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Memorandum Circular No. 9, s. 1998

Signed on August 27, 1998 (http://www.o cialgazette.gov.ph/1998/08/27/memorandum-circular-no-9-s-1998/)

MALACAÑANG
Manila

BY THE PRESIDENT OF THE PHILIPPINES

MEMORANDUM CIRCULAR NO. 9

PROHIBITING GOVERNMENT-OWNED OR CONTROLLED CORPORATIONS (GOCCs) FROM REFERRING

THEIR CASES AND LEGAL MATTERS TO THE OFFICE OF THE SOLICITOR GENERAL, PRIVATE LEGAL
COUNSEL OR LAW FIRMS AND DIRECTING THE GOCCs TO REFER THEIR CASES AND LEGAL MATTERS
TO THE OFFICE OF THE GOVERNMENT CORPORATE COUNSEL, UNLESS OTHERWISE AUTHORIZED
UNDER CERTAIN EXCEPTIONAL CIRCUMSTANCES

WHEREAS, there is a need to reduce government expenditures by minimizing the expenses of

government-owned or controlled corporations (GOCCs) which hire private lawyers and law rms,
considering the high cost of retainers, fees and charges that are paid to said private lawyers and law
rms;

WHEREAS, one way of realizing savings on the part of government-owned or controlled corporations
(GOCCs) is to implement and enforce pertinent laws and regulations which prohibit GOCCs from hiring
private retainers and law rms to handle their cases and legal matters, and those which direct GOCCs to
refer their cases and legal matters to the O ce of the Government Corporate Counsel (OGCC) for proper
handling;

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Philippines, by virtue of the powers
vested in me by law, do hereby order:
SECTION 1. All legal matters pertaining to government-owned or controlled corporations, their
subsidiaries, other corporate off-springs and government acquired asset corporations (GOCCs) shall be
exclusively referred to and handled by the O ce of the Government Corporate Counsel (OGCC).

GOCCs are thereby enjoined from referring their cases and legal matters to the O ce of the Solicitor
General unless their respective charters expressly name the O ce of the Solicitor General (OSG) as their
legal counsel.

However, under exceptional circumstances, the OSG may represent the GOCC concerned, Provided: This
is authorized by the President; or by the head of the o ce concerned and approved by the President.

SECTION 2. All pending cases of GOCCs being handled by the OSG, and all pending requests for opinions
and contract reviews which have been referred by said GOCCs to the OSG, may be retained and acted
upon by the OSG; but the latter shall inform the OGCC of the said pending cases, requests for opinions
and contract reviews, if any, to ensure proper monitoring and coordination.

SECTION 3. GOCCs are likewise enjoined to refrain from hiring private lawyers or law rms to handle their
cases and legal matters. But in exceptional cases, the written conformity and acquiescence of the
Solicitor General or the Government Corporate Counsel, as the case may be, and the written concurrence
of the Commission on Audit shall rst be secured before the hiring or employment of a private lawyer or
law rm.

This circular shall take effect immediately.

DONE in the City of Manila this 27Th day of AUGUST in the year of Our Lord, Nineteen Hundred and ninety-
eight.

(Sgd.) JOSEPH EJERCITO ESTRADA

By authority of the President:

(Sgd.) RONALDO B. ZAMORA
Executive Secretary

Source: CDAsia (http://www.cdasia.com)

RESOURCES

[PDF] Memorandum Circular No. 9, August 27, 1998

(http://www.o cialgazette.gov.ph/downloads/1998/08aug/19980827-MC-0009-JEE.pdf)
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