DOJ Opinion No. 158, s. 1994

DOJ OPINION NO. 158 , s. 1994 2nd Indorsement November 4, 1994 Respectfully returned to Dr. Patricia L. Lontoc, Presidential Assistant to I, Office of the President Malacaang, Manila, the within papers relative to the request of the Senior Vice President, Legal and Administrative Services, Philippine National Oil Company (PNOC), for a confirmatory opinion on the legality and validity of the Employee Stock Ownership Plan (ESOP) as adopted by the Petron Corporation and the PNOC and its subsidiaries. It is stated that the said ESOP was approved by the Committee on Privatization and the Securities and Exchange Commission (SEC),under which qualified employees of the Petron and PNOC and its subsidiaries are entitled to purchase Petron shares equivalent to a maximum of one year base pay, or one month base pay, for each completed year of continuous employment, whichever is greater; that the implementation thereof, Petron, as issuing company, and the PNOC, as selling shareholder, offered for sale 100 million shares to eligible employees of Petron and PNOC and its subsidiaries; that the scheme has been criticized by various sectors to be in contravention with the provisions of R.A. 6758, otherwise known as the "Compensation and Position Classification Act of 1989", because it provides additional compensation or benefit to the PNOC employees, and that the PNOC Legal and Administrative Service adopts the contrary view, hence, the instant request. We regret that we have to decline rendition of the opinion requested. Under Section 7(3), Title XVII, Book IV, E.O. No. 292 in relation to Sections 2 and 12 of R.A. No. 6758, the Department of Budget and Management (DBM), particularly its Compensation and Position Classification Bureau (CPCB), is mandated to "classify positions and determine appropriate salaries for specific position classes and review the compensation benefits programs of agencies". By established policy, the Secretary of Justice does not rule or express his views on matters which fall within the primary jurisdiction of another office, in this case, the DBM, unless the request comes from the office itself (Secretary of Justice Ops. No., 142, s. 1994, No. 39, s. 1986; Nos. 1 and 72, s. 1983). It is suggested that the instant query be addressed to the Department of Budget and Management. Very truly yours, (SGD.) FRANKLIN M. DRILON Secretary