Raphael Perpetuo Lotilla (Contributed photo)
MANILA – Nominated Department of Energy (DOE) Secretary Raphael Perpetuo Lotilla is most qualified to lead the agency, owing to his “qualifications and integrity [which] are beyond doubt” and his expertise in the sector.
Senator Sherwin Gatchalian said Tuesday that in case Lotilla is appointed, it would not be in violation of Republic Act 7638, the law that created the agency, which states that “no officer, external auditor, accountant, or legal counsel of any private company or enterprises primarily engaged in the energy industry shall be eligible for appointment as Secretary within two years from his retirement, resignation, or separation therefrom."
Lotilla, also a lawyer, currently serves as an "independent director" for private energy companies Aboitiz Power and Enexor, a publicly listed company engaged in oil and gas exploration and production, both domestically and internationally.
He was also Energy Secretary from 2005 to 2007 under the administration of President Gloria Macapagal Arroyo.
Gatchalian said an independent director is only involved in policy-making and other discussions.
"His appointment there is an independent director. So the SEC (Securities and Exchange Commission) and PSE (Philippine Stock Exchange) require an independent director in a group of directors so that independent director will provide independent analyses and independent suggestions," he said in an interview with a news channel.
The law, Gatchalian said, prohibits an officer who is directly managing the company.
"Former Secretary Lotilla is an independent director. So, meaning he doesn't have any direct management responsibility in those companies that were mentioned. He just provides directorial advice and participation. In my interpretation, he should be allowed to sit as the Secretary of Energy," he said.
Gatchalian is confident that Lotilla will be able to cascade to all Filipinos the benefits of the energy sector, which are cheap electricity rates, stable power supply, and a clean future.
"I have worked with Secretary Lotilla in many fronts related to energy. Definitely, his qualifications and integrity are beyond doubt. He's an expert in energy, both in the field of the law and also the technical side. He has advised the [Senate] Committee on Energy in many, many of the bills that we have enacted," he said.
The designation of Lotilla is pending while his employment status is being clarified, according to the Office of the Press Secretary on Monday.
He is a personal choice of President Ferdinand Marcos Jr. to lead the DOE anew.
Less strict
Gatchalian, the energy committee chair in the 18th Congress, vowed to loosen up the limitations in appointing experts coming from the private sector to government positions.
"Actually, I have some idea on relaxing this provision, making it more liberal in a sense that government can get experts from the private sector because that's the only breeding ground. There's actually only two places where we can get experts -- from the academe which is also quite scarce and from the private sector. But the private sector, because of our deregulated environment, all of them work in a private company," Gatchalian said.
Noting that there are just a handful of energy experts in the country, he said a lot of the good ones work for private companies.
"So, the government is actually at a disadvantaged status if we don't allow experts from private companies to join in," Gatchalian said, assuring that the bill that he is planning to file will be balanced.
"I know the intention of the bill. It's to prohibit conflict of interest and undue advantage. So, I'll balance it. Broadly speaking, if it's a non-executive position, then let's allow the person to participate in the government. Because again, the wealth of experience in the private sector is something that we can tap into," he added.
‘Highly qualified’
Marikina City Rep. Stella Quimbo welcomed the appointment of Lotilla, saying he is "highly qualified" for the post.
Quimbo said Lotilla has the technical expertise required for the position having led the same department from 2005 to 2007, as well as previously serving as National Economic and Development Authority (NEDA) Deputy Director General from 1996 to 2004.
She said Lotilla, as a former supervising official of the Legislative-Executive Development Advisory Council (LEDAC), was among those who pushed for reforms in the energy sector that culminated in the enactment of the Electric Power Industry Reform Act (EPIRA).
"The cabinet and the country will do well to have him at the helm of the energy sector. I trust that he shall steer us out of the energy crisis and help build a secure, sustainable, and reliable Philippine energy sector," Quimbo said.
Press Secretary Trixie Cruz-Angeles said the designation of Lotilla “is right now a nomination, pending clarification of his employment status" given that he is currently an independent director of Aboitiz Power and ENEXOR.
"Nothing in R.A. 7638, which creates the Department, disqualifies Sec. Lotilla from becoming DOE chief. The law provides that '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...'," Quimbo said.
She also cited the Revised Corporation Code, which clearly delineates “officers” of a corporation from members of the board of trustees or directors.
"If anything, being elected as an independent director of a major publicly listed energy company adds more to Sec. Lotilla's qualification rather than diminish it. It shows that stakeholders in the industry recognize him as a man of unquestionable integrity, possessing specialized knowledge of the energy sector," she said.
Before his appointment to DOE, Lotilla was president of the Power Sector Assets and Liabilities Management Corporation (PSALM).
Lotilla began his career in academia as Assistant Professor of Law in 1985 at the University of the Philippines (UP) shortly upon his admission to the Bar.
He also served as UP's Vice President for Public Affairs in 1991 and as Director of the Institute of International Legal Studies of the UP Law Center from 1989 to 1996.
Lotilla was appointed Professor of Law in 1995.
He also served as legal consultant to the Senate and the Senate Committee on Foreign Relations. (PNA)
