CoA flags DILG for hiring two private lawyers without OSG’s permission
STATE AUDITORS said the Department of the Interior and Local Government (DILG) hired two private lawyers for its Bantay Korapsyon program in 2020 without the consent of the Office of the Solicitor General (OSG).
The Commission on Audit (CoA), in its 2020 audit report, said that the DILG head office contracted and paid for the service of two private lawyers totaling to P1.69 million in retainer fees.
The Bantay Korapsyon program is a DILG flagship program that seeks to encourage public involvement “down to the grassroots level” in the agency’s fight against corruption.
Under CoA Circular No. 95-11, the written conformity and consent of the OSG and the written concurrence of the state auditors are required prior to the hiring of private lawyers or law firms “in the event that such legal services cannot be avoided or is justified under exceptional circumstances.”
Auditors had received a letter from DILG Secretary Eduardo M. Año who requested for written conformity and the acquiescence of the OSG in favor of the private lawyers, but it was not stamped by the OSG.
Rather, the auditors noticed that the letter contained a marking that indicated that the request was furnished to different offices of the CoA, including the Office of the CoA Chairperson.
“The [DILG] has no indication that it has been either received or stamped released by OSG record sections on February 24, 2020, the date after effectivity date of the contract of services, contrary to the guidelines that requests shall be sent to and received by OSG prior to the effectivity date of the contract,” CoA said.
They also said that they denied a letter request by Mr. Año for CoA’s written concurrence on the hiring for “non-compliance with mandatory requirements.”
Auditors asked the DILG to explain why the retainer fees for the private lawyers should be allowed in audit.
In an audit comment included in the CoA report, the DILG said that the lawyers were only hired to provide technical expertise and coordination with other government agencies with regard to corruption policies.
CoA has responded in its rejoinder that the contracts of the private lawyers fit the “scope of the prohibition of CoA Circular No. 95-011.”
“Indeed, when government entity engages the legal services of private counsel or law firm, it must do so with the necessary authorization required by law; otherwise, its officials bind themselves to be personally liable for compensating such legal services,” CoA said.
BusinessWorld has reached out to Mr. Año for a comment but has yet to receive a reply. — Russell Louis C. Ku
