THE Department of Justice (DOJ) has issued a legal opinion declaring that firms under the IRC Group of Cos., surrendered by known Marcos crony Jose Campos, are not considered government firms subject to asset disclosure rules.
In a six-page legal opinion issued on March 30, the DOJ held that IRC Group officers are not public officials, because the property and investment companies are not considered government-owned and -controlled coporations (GOCCs) imbued with public interest. The DOJ issued the opinion upon the request of the Presidential Commission on Good Government (PCGG) Commissioner Ronald Chua. Chua sought the DOJ legal opinion on the matter after the Office of the Ombudsman issued a subpoena to one of IRC Group’s
general managers.
The DOJ cited the April 2000 decision of the Supreme Court (SC) in the case of Leyson v. Office of the Ombudsman. That jurisprudence defined a GOCC as (1) an agency organized as a stock or nonstock corporation; (2) vested with functions relating to public needs, and; (3) owned by the government directly or indirectly.
The IRC Group did not meet the second requisite of the SC’s three-requisite test, the DOJ said.
Thus, the DOJ pointed out that IRC Group’s officials, who are neither appointed nor elected, cannot be considered public officials that the Ombudsman can require to submit their Statements of Assets, Liabilities and Net Worth (SALN).
“[B]ased on the PCGG’s determination that the subject corporations are involved in real estate and investment and not in any way related to a public need, we find that despite being fully owned by the republic, the subject corporations are not GOCCs,” the opinion signed by Justice Secretary
Emmanuel Caparas said.
“There is basis to clarify with the Ombudsman that the requirement on the submission of SALN does not apply here,” Caparas added. The said opinion also cleared the IRC Group’s hiring of external auditors, which has been flagged by the PCGG’s resident auditor. The DOJ said it is the Commission on Audit that has jurisdiction over the IRC Group’s income, because the proceeds of its privatized assets are public funds remitted to the Bureau of Treasury.
However, the DOJ said the corporations are not precluded from engaging “additional, concurrent services” of external auditors.