DOJ Opinion No. 028, s. 2001

DOJ OPINION NO. 028 , s. 2001 June 1, 2001 Hon. Alberto G. Romulo Secretary Department of Finance (DOF) Manila Sir : Reference is made to your letter dated April 26, 2001 which seeks the opinion and advice of this Department as to whether it is in order for DOF and the Government negotiating team to negotiate and execute the loan agreement upon issuance of Full Powers by the President providing for such authority in connection with the proposed US $60 million loan made available by the International Bank for Reconstruction and Development (IBRD) to finance the Metro Manila Urban Transport Integration Project (MMURTRIP) of the Department of Public Works and Highways (DPWH). With deep regret, this Department cannot render the opinion requested. Sections 1, 2, and 3(5), Chapter 1, Title II, Book IV of the Administrative Code of 1991 provide that: "SECTION 1. Declaration of Policy . It is the policy of the State that the Department of Finance shall be primarily responsible for the sound and efficient management of the financial resources of the Government, its subdivisions, agencies and instrumentalities. "SECTION 2. Mandate . The Department shall be responsible for the formulation institutionalization and administration of fiscal policies in coordination with other concerned subdivisions agencies and instrumentalities of government. "Moreover, the Department shall be responsible for the generation and management of the financial resources of government, ensuring that said resources are generated and managed judiciously and in a manner supportive of development objectives. xxx xxx xxx "Finally, the Department shall be responsible for the review , approval and management of all public sector debt, whether foreign or domestic , with the end in view of ensuring that all borrowed funds are effectively utilized and all such obligations are promptly serviced by the government. SECTION 3. Powers and Functions . To accomplish its goals, the department shall: SHcDAI xxx xxx xxx "(5) Undertake and supervise activities related to the negotiation, servicing and restructuring of domestic and foreign debt incurred or guaranteed by the government and its instrumentalities, including taking part in activities which affect the country's capacity to service foreign debt; xxx xxx xxx (Emphasis supplied). Pursuant to the afore-quoted provisions, the resolution of the query falls within the discretionary power of that Office involving as it does technical and policy matters which call for the financial and technical expertise of that Office. Please be guided accordingly. Very truly yours, (SGD.) HERNANDO B. PEREZ Secretary