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Energy secretary-appointee Raphael Lotilla. ABS-CBN News/file
MANILA — The Department of Justice on Thursday said lawyer Raphael Perpetuo “Popo” Lotilla can be appointed Energy secretary, despite a law prohibiting an officer of an energy company from being appointed to the post.
“The position of the department is that the appointment should be valid given that an independent director does NOT fall within those prohibited by the Department of Energy Act of 1992,” the DOJ said in a statement.
Up until the announcement of his appointment on Monday, Lotilla served as an independent director of Aboitiz Power Corporation and Ace Exenor.
On the same day, however, Press Secretary Trixie Cruz-Angeles said they are still checking the status of his employment given the restrictions under Republic Act 7638 or the Act Creating the Department of Energy.
Under Sec. 8 of the DOE law, “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 (2) years from his retirement, resignation, or separation therefrom.”
But according to the DOJ statement Thursday, an independent director like Lotilla does not fall within the prohibition.
“The novel concept of an ‘independent director’ was not contemplated by Republic Act No. 7638… 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-a-vis the corporation he serves. It is sui generis in character,” the department press statement said.
Lotilla previously served as DOE secretary from 2005 to 2007 and deputy director-general at the National Economic Development Authoritiy (NEDA).
He has also served in various capacities in different corporations and has taught at the University of the Philippines College of Law.
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