ILOILO City – The Department of Justice (DOJ) said there is no legal obstacle to the appointment of Antiqueño Raphael Lotilla as the country’s new secretary of the Department of Energy (DOE).
In a statement, the DOJ said it believes that Lotilla’s nomination is “valid and lawful” even as he served as an independent director of Aboitiz Power Corporation and Ace Enexor.
“The position of the department is that the appointment should be valid given that an independent director does not fall within those prohibited by the Department of Energy Act of 1992,” Mico Clavano, a lawyer with the Office of Justice Secretary Jesus Crispin Remulla, told reporters.
Lotilla, a lawyer from Sibalom, Antique, also served as DOE secretary during the Arroyo administration from 2005 to 2007.
The DOJ said the novel concept of an “independent director” was not contemplated by Republic Act (RA) 7638, otherwise known as the Department of Energy Act of 1992.
Section 8 of RA 7638 states that “no officer, external auditor, accountant, or legal counsel of any private company or enterprise primarily engaged in the energy industry shall be eligible for appointment as Secretary within two (2) years from his retirement, resignation, or separation therefrom.”
The DOJ said in accordance with the Revised Corporation Code, Securities Regulations Code, and the Code of Corporate Governance, an independent director is “not an officer based on the nature, duties, functions and responsibilities vis-à-vis the corporation he serves”.
“It is clear that an independent director like Lotilla does not fall within the proscription under Section 8 of R.A. 7638 against an officer, external auditor, accountant, or legal counsel of any private company or enterprise primarily engaged in the energy industry,” it said.
Press Secretary Trixie Cruz-Angeles earlier said Lotilla’s designation “is right now a nomination, pending clarification of his employment status.”
Prior to his appointment to DOE, Lotilla was president of the Power Sector Assets and Liabilities Management Corporation (PSALM).
PSALM is the government corporation tasked to manage the privatization of power generation assets, independent power producers’ contracts and other non-power assets, including the management of financial obligations and stranded contract costs of the state-owned National Power Corporation. (PNA/PN)
