Can Government Agencies Hire Private Legal Counsel/Lawyer? What does COA allow?

Yes but only in extraordinary or exceptional circumstances, duly justified, and with prior written approval from the Solicitor General or the Government Corporate Counsel and the Commission on Audit.

Commission on Audit (COA) Circular No. 1995-011 dated December 4, 1995, provides that public funds shall not be utilized for payment of the services of a private legal counsel or law firm to represent government agencies in court or to render legal services for them.

Further, the Circular provides that in the event that such legal services cannot be avoided or is justified under extraordinary or exceptional circumstances, the written conformity and acquiescence of the Solicitor General or the Government Corporate Counsel, as the case may be, and the written concurrence of the COA shall first be secured before the hiring or employment of a private lawyer or law firm.

Source: Commission on Audit