DOJ Opinion No. 174, s. 1991

DOJ OPINION NO. 174 , s. 1991 December 26, 1991 Mr. Pablo V. Malixi President Pambansang Korporasyon sa Elektrisidad Diliman, Quezon City Sir : This refers to your request for opinion on the applicability of Republic Act No. 7160, otherwise known as the Local Government Code of 1991, as regards the "prosecution by the National, Power Corporation (NPC) of the Government's power program as well as the operation of its power plants and facilities". You state that the NPC is tasked with the responsibility of undertaking the production and generation of electric from all sources, transmission of electric power on a nationwide basis, and the spread of the benefits of its projects and operations to the greatest number and at the least cost to the public (Sections 1 and 2 R.A. No. 6395); that in the implementation of its projects and the operation of its plants facilities, the NPC has been granted tax and duty exemptions (see Sec. 13, supra); that these exemptions had been judicially upheld by the Supreme Court in G.R. No. 88291 entitled "Ernesto M. Maceda vs. Hon. Catalino Macaraig, Jr., et. al"; and that with the impending effectivity of the Local Government Code of 1991, the NPC will be affected in the implementation of its projects and the operation of its plants and facilities, hence, the request for "advisory opinion" on the following queries: prcd (1) "What is the legal import of the phrase "to consult with local government units, non-governmental organizations, and other sectors set forth in Section 26 of the Local Government Code of 1991? Does it empower local government units to prevent the implementation of projects and/or programs which they perceive to the environmentally unsafe although the proponents of such projects and/or programs have complied with or otherwise satisfied the environmental standards as prescribed by the power authorities of the national government? Does "prior approval of the sanggunian concerned" as stated in Section 27 mean vestment of regulatory power to the sanggunian vis-a-vis the projects contemplated in Section 26? Stated differently in Section 27 effected the transfer of the regulatory power of the Environmental Management Bureau on environmental matters as provided for in P.D. No. 1586 to the sanggunian concerned?" (2) "Does the franchise tax as provided for under Section 137 extend to the operation of NPC?" (3) "Has Section 234 withdrawn the exemption of NPC from payment of real estate tax?" cdlex With regret, we are constrained to decline rendition of the opinion requested. The queries raised herein relate to interpretation of Sections 26, 27, 137 and 234 of the Local Government Code of 1991, a function which devolves upon the Department of the Interior and Local Government. Pursuant to well-established policy and precedents, the Secretary of Justice refrains from expressing his views on matters falling within the primary jurisdiction of another office or agency, unless upon the request of said office or agency (Secretary of Justice Opns. No. 194, s. 1976; Nos. 67 and 69, s. 1979; No. 97, s. 1982; and No. 20, s. 1988). This is specially true in this case where the agency involved is a co-equal and coordinate department of government (Id., No. 39, s. 1986). Moreover, the resolution of the second and third queries requires a determination of the tax-exempt status of NPC which is a matter that properly pertains to the Department of Finance (see Sec. 102 of P.D. 464 and Book IV, Title II, Chapter I, Sec. 2 of Executive Order No. 292, Administrative Code of the Philippines). Wherefore, it is suggested that you consult these two Departments since they are in the positions to clarify matters for you. llcd Very truly yours, (SGD.) SILVESTRE H. BELLO III Acting Secretary