The Department of Justice (DoJ) has given the green light to the Department of the Interior and Local Government’s (DILG) proposed relocation of its central office through a lease-purchase arrangement with the Government Service Insurance System (GSIS), affirming its legal viability under existing procurement and property valuation laws.

In a legal opinion addressed to DILG Secretary Juanito Victor Remulla, the DoJ said the plan is consistent with rules governing Multi-Year Contractual Authority (MYCA) issued by the Department of Budget and Management.

The MYCA, the DoJ said, is a binding commitment that must be secured before initiating procurement activities and requires a detailed annual cost breakdown in accordance with DBM Circular 2023-7.

The DoJ further noted that the total and yearly costs under the MYCA will form the basis for both the Approved Budget for the Contract and the Certificates of Availability of Funds, ensuring financial viability throughout the lease term.

On property valuation, the DoJ emphasized that acquisitions by national government agencies must comply with market value standards defined under Republic Act 12001, or the Real Property Valuation and Assessment Reform Act.