Mayors can issue permits for their own businesses

The legal experts of the Department of Interior and Local Government have clarified that mayors can issue a mayor's permit even to their own private firms without violating any law, but warned them not to engage into any business transactions with their public offices.

Some mayors, including Ormoc City Mayor Eric Codilla, sought the legal opinion of the DILG due to fears they might violate certain provisions of the law if they issue mayor's permit to their own private companies.

DILG Secretary Angelo Reyes explained that the issuance of a mayor's permit is not a transaction, which may give rise to a conflict of interest. "Such is purely ministerial act of the mayor, wherein no discretion, not even judgment is involved," he said.

Codilla sought the opinion of the DILG legal experts because of his private firms involving civil works construction and chicken dressing in Ormoc City. These private companies owned by Codilla do not engage in business transactions with the Ormoc City government.

The anti-graft and corrupt practices act provides that public officers may be held liable if they directly or indirectly have business with which he intervenes or takes part in his official capacity.

Reyes said the prohibited act refers to transaction in which one has any financial or pecuniary interest.

He further said while it is true that the mayor issues licenses and permits and has the power to revoke the same for any violation of the conditions upon, which said licenses or permits have been issued, the issuance thereof depends on whether or not all the requirements set forth by law are met. - Rene U. Borromeo