Republic of the Philippines

Province of Isabela
MUNICIPALITY OF GAMU

OFFICE OF THE MUNICIPAL MAYOR

May 6, 2020

Ms. JAZIEL M. CABBAB, CPA

State Auditor III
OIC- Audit Team Leader
LGS- D Isabela Province I Team R2-06
Municipalities of Aurora, Burgos, Gamu & San Manuel

Dear Auditor Cabbab,

We have received Audit Observation Memorandum (AOM) No. 2020-008 (2019-026) on March 10,
2020 re: hiring of a Legal Officer without the written conformity and acquiescence of the Solicitor
General and written concurrence of the Commission on Audit, as follows:

At the outset, the requirement of COA Circular No. 98-002 dated June 9, 1998 on the written conformity
and acquiescence of the Solicitor General and the written concurrence of the Commission on Audit
pertains to the hiring of a legal officer in actions or proceedings where the municipality is a party adverse
to the provincial government, a component city, or another municipality.

In the case of the Municipality of Gamu, Isabela, to ensure that its legal affairs are in compliance with all
laws and regulations, it has been the practice of its past administrations to hire a private lawyer under a
“contract of service agreement”. The services of this lawyer are necessary in monitoring its legal affairs.
Seeing the indispensable need of this service, the undersigned opted to continue hiring a private lawyer,
who is used to be labeled as “Legal Officer”.

It must be emphasized, however, that the classification of the Legal Officer hired by our Municipality is
actually different to the item of a private lawyer referred to in COA Circular No. 98-002. The function of
our Legal Officer is to provide adequate and efficient legal assistance, legal support and guidance, while
the role of the private lawyer under COA Circular No. 98-002 is to represent a local government unit in a
lawsuit. Obviously, therefore, these are two different items.

As a distinct item employed under a Contract of Service Agreement authorized by the Civil Service rules
and regulations, unlike the position referred to in COA Circular No. 98-002, the undersigned believes
that the written conformity and acquiescence of the Solicitor General and the written concurrence of the
Commission on Audit is inapplicable in the employment of the Legal Officer of our Municipality.

Since the hiring of the Legal Officer of our Municipality is authorized by civil service laws and
regulations, and being a distinct item to the subject of COA Circular No. 98-002, it necessarily follows
that the disbursements of the January 2019 to December 2019

P20,000.00 monthly wages for the said contract of service agreement item is not against the law or rules
and regulations for that matter.

Also, if you observe most, if not all of our contracts were notarized by our hired legal officer wherein no
notarial fee has been paid. If we do not hire a legal officer we will have to pay notarial fee which is in our
opinion entails more cost than this questioned practice.

Reply letter on AOM No.: 2020-008 (2019-26) Page 1 of 2

In view of the foregoing, the undersigned submits that the Municipality of Gamu, Isabela committed no
irregularity in the use of public funds when it hired a private lawyer and disbursed the amount
corresponding to her wages.

We are hoping that by virtue of this reply letter we have given enough justifications on the findings you
have.

Very truly yours,

NESTOR M. UY
Municipal Mayor

Reply letter on AOM No.: 2020-008 (2019-26) Page 2 of 2