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Question
DOT, through its Regional Office, designates a Regional Tourism Permit Officer (RTPO) to issue Private Tourism Establishment Permits for private resort projects within his district. The RTPO signs and issues a permit to Azure Shores Resort, Inc. for the construction and operation of a 60-room resort on private land within the municipality, valid for five years, stating the permit is "issued under the authority of DOT Regional Office" and that "DOT supervision applies." Azure Shores begins construction. DOT later revokes the permit, arguing that the RTPO had no authority to issue Private Tourism Establishment Permits for private tourism facilities. Azure Shores sues to enforce the permit, arguing that the RTPO’s appearance of authority binds the government. (a)Determine whether the RTPO had actual authority to issue Private Tourism Establishment Permits for private tourism facilities, or whether his authority is limited to regulatory actions affecting private tour operators and similar facilities. (b)If the RTPO lacked such authority, explain whether DOT can be bound by theories of apparent authority or agency by estoppel, and what factors must be shown. (c)Identify the remedies available to DOT and to Azure Shores, and the likely outcome under Philippine law.