The Department of Justice (DoJ) stated that the Private Education Assistance Committee (PEAC) is a private entity, despite being established by an Executive Order.

This was stated in a legal opinion dated 24 September issued by DoJ Undersecretary Raul T. Vasquez addressed to Department of Education (DepEd) Undersecretary Omart V. Romero.

“After a careful review of relevant laws and jurisprudence, we reiterate our position that PEAC is a private entity,” stated Vasquez.

Executive Order 156 series of 1968, created PEAC, and later amended by EO 150, series of 1994. 

PEAC was designated as trustee of the Fund for Assistance to Private Education (FAPE).

The FAPE was established by the Special Fund for Education authorized by United States Public Law 88-94, through a project agreement between the US and Philippine governments..

The DoJ said, “The constitution of the PEAC by an Executive Order, by itself, does not automatically render it as a government agency or instrumentality under the general administrative supervision of the Office of the President pursuant to the 1987 Constitution and the Administrative Code.”

Citing past opinions that “the PEAC is neither a committee, agency or instrumentality within the purview of the Administrative Code and other relevant laws.”

But the DoJ said, “the authority of the CoA (Commission on Audit) to audit can extend even to non-governmental entities, such as the PEAC, but only in so far as it is consistent with the provisions of Section 2(1)(d) of the Constitution, Presidential Decree (PD) 1445 also known as the Auditing Code of the Philippines, and the Administrative Code.”

Romero sought the DoJ’s legal opinion to determine the legal personality of the committee since former Education Secretary Leonor Magtolis Briones and Vice President and former Education Secretary Sara Z. Duterte have previously expressed that the PEAC is a government instrumentality.

Vasquez explained that EO 156 was issued merely to implement the Project Agreement and Exchange of Notes between the US Government and the Philippine Government to assist with private education in the Philippines, and with no intention to constitute the PEAC as a government agency, instrumentality or corporate entity, can be inferred from its provisions.

He also said the purpose of which PEAC was constituted, as well as its functions and responsibilities, do not partake like sovereign functions.

Vasquez said PEAC does not also fall within the purview of the term “instrumentality” as defined under the Administrative Code.