DOJ: Lotilla’s nomination as energy secretary ‘valid, lawful’

THE Department of Justice (DOJ) sees nothing wrong in the re-appointment of Raphael Perpetuo Lotilla as secretary of the Department of Energy.

In a statement, the DOJ said Lotilla’s nomination for the post is “valid and lawful.”

After announcing Lotilla’s nomination, Press Secretary Trixie Cruz-Angeles said they are still clarifying his employment status, citing Section 8 of Republic Act 7638 or the Act Creating the Department of Energy that provides, “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 years from his retirement, resignation, or separation therefrom.”

Lotilla, who served as the energy secretary from 2005 to 2007 during the administration of former President Gloria Macapagal-Arroyo, is currently an independent director of Aboitiz Power and Enexor.

“In accordance with the subsequent laws, namely, 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 sui generis in character,” the DOJ said.

“Even the articles and by-laws of Aboitiz Power Corporation and Ace Enexor where Lotilla served as an independent director adopt the statutory concept of an independent director. Thus, it is clear that an independent director like Lotilla does not fall within the proscription under Section 8 of RA 9638 against an officer, external auditor, accountant, or legal counsel of any private company or enterprise primarily engaged in the energy industry,” it added. (SunStar Philippines)