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CONFERENCE/WORKSHOP
on COAs Quasi- Judicial Function

February 7-8, 2017

Old SAADO, COA
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Legal Retainer Review

Historical Background -
The following prefatory statement of COA Circular 86-255
dated April 2, 1986 speaks of the origin of LRR -

It has come to the attention of this Commission that

notwithstanding restrictions or prohibitions on the matter
under existing laws, certain government agencies,
instrumentalities, and government-owned and/or controlled
corporations, notably government banking and financing
institutions, persist in hiring or employing private lawyers or
law practitioners to render legal services for them and/or to
handle their legal cases in consideration of fixed retainer fees,
at times in unreasonable amounts, paid from public funds.
In keeping with the retrenchment policy of the present
administration, this Commission frowns upon such a practice.
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Legal Retainer Review

Law Offices of the Government

The Office of the Solicitor General (OSG), an

independent and autonomous office attached to the
Department of Justice is vested by law as the principal
law officer and legal defender of the government.
(Chapter 12, Title III, Book IV, Executive Order No. 292)

Office of the Government Corporate Counsel (OGCC)

acts as the principal law office of all GOCCs, their
subsidiaries, other corporate offsprings and
government acquired assets corporations (Chapter 3, Title
III, Book IV, EO No. 292)
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Legal Retainer Review

Prohibiting GOCCs from referring

their cases and legal matters to the
OSG, Private Legal Counsel or Law
Firms and directing the GOCCs to
refer their cases and legal matters to
the OGCC, unless otherwise
authorized under certain exceptional
circumstances (MC No. 9 s. 1998 dated August 27,
1998, Issued by Pres. Joseph E. Estrada)
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Legal Retainer Review

COA Issuances
1. COA Cir. No. 86-255 dated April 2, 21986 (Signed solely by
then Chairman Teofisto T. Guingona, Jr.)

Subject: Inhibition against

employment by government agencies
and instrumentalities, including
government-owned or controlled
corporations, of private lawyers to
handle their legal cases
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Legal Retainer Review

COA Issuances
2. COA Circular No. 95-011 dated December 4, 1995
Subject: Prohibition against employment
by government agencies and
instrumentalities, including government-
owned or controlled corporations, of
private lawyers to handle their legal cases
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Legal Retainer Review

COA Issuances
2. COA Circular No. 95-011
Pursuant to COAs Constitutional mandate to promulgate accounting
and auditing rules and regulations

public funds shall not be utilized for payment of the services of a

private legal counsel or law firm to represent government agencies
in court or to render legal services for them. In the event that such
legal services cannot be avoided or is justified under extraordinary
or exceptional circumstances, 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 first be secured before the hiring or
employment of a private lawyer or law firm.
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Legal Retainer Review

COA Issuances
2. COA Circular No. 95-011
Municipality of Pililla, Rizal vs. Court of Appeals, et. al.,
G.R. No. 105909, June 28, 1994:

"Under the above-provision (Section 1683 of the
Revised Administrative Code), complemented by
Section 3, Republic Act No. 2264, the Local Autonomy
Law, only the Provincial Fiscal and the Municipal
Attorney can represent a Province or Municipality in
their lawsuits. The provision is mandatory. The
municipality's authority to employ a private lawyer is
expressly limited only to situations where the
Provincial Fiscal is disqualified to represent it.
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Legal Retainer Review

COA Issuances
3. COA Circular No. 98-002 dated June 9, 1998
Incorporating the letter dated January 27, 1997 of then Solicitor
General Silvestre H. Bello III.

Excludes LGUs in the OSGs authority to deputize

private lawyers.
Section 481 of RA 7160, it is the legal officer of a
municipality who must handle its legal affairs, including
representation in court. In the absence thereof, the
Provincial Legal Officer.
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Legal Retainer Review

With respect to local government units, only in those

instances provided in par. 3(1), Section 481 of R.A.
7160, which states, thus:

"x xx x: Provided, That, in actions or proceedings

where a component city or municipality is a party
adverse to the provincial government or to another
component city or municipality, a special legal officer
may be employed to represent the adverse party;"

may public funds be utilized as payment for the

services of a private legal counsel or law firm."
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Legal Retainer Review

RULE VIII
ORIGINAL CASES FILED
DIRECTLY WITH THE COMMISSION PROPER
Section 1. Original Jurisdiction. - The Commission Proper
shall have original jurisdiction over: xxx b) request for
concurrence in the hiring of legal retainers by government
agency; xxx
(2009 RRPC)

Hiring of Legal Retainer A request for concurrence of the

Commission in the hiring of legal retainer shall be filed with
the Office of the General Counsel who shall evaluate the
same and issue the written concurrence or denial thereof in
behalf of the Commission. A request for reconsideration or
appeal therefrom shall be cognizable by the Commission
Proper.
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Legal Retainer Review

The Twin-Requirement in the hiring of private

lawyers as counsels:

1. Prior written conformity and acquiescence of

the Solicitor General or the Government Corporate
Counsel, as the case may be; and

2. Written concurrence of the Commission on Audit

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Legal Retainer Review

GUIDELINES
OSG Memorandum Dated December 15, 2015
Subject: Revised Guidelines on Deputation of Private Lawyers and Special
Attorneys

Original Deputation, Documentary Requirements:

a. Curriculum Vitae
b. MCLE Certificate for the current compliance period;
c. IBP Certificate of Good Standing for the current year;
d. Copy of the Proposed Contract of Service (for private
law years and law firms only); and
e. The letter request for deputation of private counsel
must also state the reason of the need to engage their
services.
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Legal Retainer Review

Renewal of Deputation
a. Updated MCLE Certificate, if applicable;
b. IBP Certificate of Good standing for the
current year;
c. Status Report of Cases previously
handled, if any; and
d. Copy of the Proposed Contract of Service.
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Legal Retainer Review

Hiring of private lawyers as technical consultants for the

government or client agency: No need for the requisite prior
written conformity and acquiescence of the OSG, provided
that:
a. the technical consultants services pertain exclusively and
are limited to purely technical matters;
b. under the terms and and conditions of the Proposed
Contract of Service, such technical consultant is prohibited
from rendering legal services to the government or client
agency concerned
c. the government or client agency concerned shall secure a
clearance from the SolGen that his prior written conformity
and acquiescence for the hiring of such technical consultant is
not required.

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Legal Retainer Review

Legal Services shall mean any activity, in and
out of court, that requires the application of
law, legal procedure, knowledge, training and
experience. The term shall also include
giving notice or rendering any kind of service,
which device or service requires the use in
any degree of legal knowledge or skill.
(Cayetano vs. Monsod, G.R. No. 100113,
Sept. 3, 1991)

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Legal Retainer Review

The OSG, not being the lawyer of LGUs cannot

deputize private lawyers to handle LGU cases
[COA Circular 98-002; OSG vs. CA, 725 SCRA
469, 478-479 (2014); Municipality of Pililla, Rizal v.
CA, 233 SCRA 484 1994)]

All requests for deputation, original or for renewal,

must be sent to, and received by, the OSG prior to
the effectivity of the period stated in the Proposed
Contract of Service as no retroactive deputation
shall be allowed.
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Legal Retainer Review

Additional Documentary Requirements -

Certificate of Availability of Funds (CAF)

Accomplishment Report on previous
contract period
Comment/recommendation of the ATL/SA
and the RD/CD
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THANK YOU