PRESCRIBING THE PROCEDURE FOR ADMINISTRATIVE SETTLEMENT OR ADJUDICATION OF DISPUTES, CLAIMS AND CONTROVERSIES BETWEEN OR AMONG GOVERNMENT OFFICES, AGENCIES AND INSTRUMENTALITIES…

WHEREAS, it is necessary in the public interest to provide
for the administrative settlement or adjudication of disputes, claims and
controversies between or among government offices, agencies and
instrumentalities, including government-owned or controlled corporations, to
avoid litigations in court where government lawyers appear for such litigants to
espouse and protect their respective interests altho, in the ultimate analysis,
there is but one real party in interest — the Government itself — in such
litigations;

WHEREAS, court cases involving the said government entities
and instrumentalities have needlessly contributed to the clogged dockets of the
courts, aside from dissipating or wasting the time and energies not only of the
courts but also of the government lawyers and the considerable expenses incurred
in the filing and prosecution of judicial actions; and

WHEREAS, all the aforementioned offices, agencies, and
instrumentalities are under the executive control and supervision of the
President of the Philippines;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution as
Commander-in-Chief of all the Armed Forces of the Philippines and pursuant to
Proclamation No. 1081, dated September 21, 1972 and General Order No. 1, dated
September 22, 1972, as amended, do hereby order and decree:

SECTION 1. Provisions of law to the contrary
notwithstanding, all disputes, claims and controversies solely between or among
the departments, bureaus, offices, agencies and instrumentalities of the
National Government, including government-owned or controlled corporations but
excluding constitutional offices or agencies, arising from the interpretation
and application of statutes, contracts or agreements, shall henceforth be
administratively settled or adjudicated as provided hereinafter:
Provided, That this shall not apply to cases already pending in court
at the time of the effectivity of this Decree.

SEC. 2. In all cases involving only questions of law, the
same shall be submitted to and settled or adjudicated by the Secretary of
Justice, as Attorney General and ex officio legal adviser of all
government-owned or controlled corporations and entities, in consonance with
Section 83 of the Revised Administrative Code. His ruling or determination of
the question in each case shall be conclusive and binding upon all the parties
concerned.

SEC. 3. Cases involving mixed questions of law and of fact
or only factual issues shall be submitted to and settled or adjudicated by:

1. The Solicitor General, with respect to disputes or claims or controversies
   between or among the departments, bureaus, offices and other agencies of the
   National Government;
2. The Government Corporate Counsel, with respect to disputes or claims or
   controversies between or among the government-owned or controlled corporations
   or entities being served by the Office of the Government Corporate Counsel; and
3. The Secretary of Justice, with respect to all other disputes or claims or
   controversies which do not fall under the categories mentioned in paragraphs (a)
   and (b).

SEC. 4. In the settlement or adjudication of the
aforementioned cases, the Secretary of Justice or the Solicitor General or the
Government Corporate Counsel may in his discretion refer to an arbitration panel
the determination of questions of fact. The duly designated representative of
the Secretary of Justice, Solicitor General or Government Corporate Counsel, as
the case may be, shall act as Chairman of such panel.

SEC. 5. The decisions of the Secretary of Justice, as well
as those of the Solicitor General or the Government Corporate Counsel, when
approved by the Secretary of Justice, shall be final and binding upon the
parties involved. Appeals may be taken to and entertained by the Office of the
President only in cases wherein the amount of the claim or value of the property
exceeds P1 million. The decisions of the Office of the President on appealed
cases shall be final.

SEC. 6. The final decisions rendered in the settlement or
adjudication of all such disputes, claims or controversies shall have the same
force and effect as final decisions of the courts of justice.

SEC. 7. The Secretary of Justice is hereby authorized to
promulgate such rules as he may deem necessary to carry out or implement the
provisions of this Decree.

SEC. 8. This Decree shall take effect upon its
promulgation.

Done in the City of Manila, this 9th day of July, in the year of Our Lord,
nineteen hundred and seventy-three.

			(Sgd.) FERDINAND E. MARCOS President Republic of the Philippines
	By the President:
	(Sgd.) ROBERTO V. REYES
		Assistant Executive Secretary