DOJ Opinion No. 107, s. 1982

DOJ OPINION NO. 107 , s. 1982 2nd Indorsement June 29, 1982 Respectfully returned to the Acting Treasurer of the Philippines, Bureau of the Treasury, Manila, his within letter, which was referred to this Ministry by the Officer in Charge, Corporate and Legal Department, Securities and Exchange Commission, requesting opinion as to whether or not the "seventh (7th) paragraph" of the Investment Management Agreement entered into by and between the Home Financing Corporation (HFC), a government owned/controlled corporation and the Philippine National Bank (PNB), whereby the former as trustor, authorized the latter as trustee, to invest and reinvest HFC's fund in "money market investment" runs counter to Section 3 of Letter of Instructions No. 1115 dated March 18, 1981, which provides that "the amounts held in trust or otherwise managed/advised for and in behalf of government owned or controlled corporations . . . shall be invested only in securities issued by the Treasury, the Central Bank or other government owned or controlled corporations." LexLib With regret this Office is constrained to forebear rendition of opinion on the instant query. LOI No. 1115 is addressed, among others, to the Minister of Finance, the Minister of the Budget and the Minister of Local Government and Community Development, and directs said officials together with the Chairman, Commission on Audit to "issue the necessary rules and regulations to implement the LOI. (Section 5, ibid.) This being the case, if we should render opinion on the query, which would involved an interpretation of the provisions of the subjects LOI, our views on the question might possibly not concur with the "rules and regulations" implementing LOI No. 1115. It bears emphasis that our opinions, being purely advisory in nature, cannot prevail over the official actuations of the office/body primarily charged with the implementation of the LOI involved.(See Opinion No. 145, s. 1973) Furthermore, well-settled and sound administrative practice as well as official courtesy has heretofore constrained us to advice adherence to the accepted rule that subordinate officials, on questions arising in the performance of their official functions, first consult their ministry/office head before submitting the matter to this Ministry for opinion. Otherwise, the subordinate officials of a ministry or bureau might elevate to this Ministry matters which the Ministry/office head has already determined or which he can competently decide without soliciting opinion or advice from this Ministry (See. Ops. Secretary of Justice, Nos. 46, s. 1963 and 82, s. 1974) Wherefore, it is suggested and advised that the query be addressed to and/or all of the aforementioned officials, in their capacity as members of the body authorized to issue the rules implementing LOI 1115, and with respect to the Minister of Finance, also in his capacity as your ministry head. LexLib Very truly yours, (SGD.) RICARDO C. PUNO Minister of Justice