Congress shields Meco from GOCC coverage

MANILA, Philippines – Citing “diplomatic” and “political” implications, the congressional bicameral conference committee agreed to exclude the Manila Economic and Cultural Office (Meco) from the coverage of the GOCC (government-owned and controlled corporations) Governance Act of 2011.

The proposed measure had already been approved by the bicameral committee, but it conducted another hearing on Wednesday to address the proposed exclusion of the Meco from its coverage.

No less than Foreign Secretary Albert del Rosario requested for the exclusion of Meco from the proposed law.

In his letter dated May 24, 2011 to Congressman Joseph Abaya, co-chairman of the bicameral committee, del Rosario explained that MECO was created as a private non-stock corporation, one of the preconditions when Philippines established diplomatic ties with the People’s Republic of China and agreed to a One-China Policy.

“MECO is a legal fiction to maintain our One-China Policy, and this arrangement has worked well and has enhanced and deepened our relationship with Taiwan without jeopardizing our diplomatic relations with China,” he said in the letter.

“By classifying MECO as GICP (Government Instrumentality with Corporate Powers), this will effectively accord MECO officials status that will contravene the purpose for which it was originally created,” he said.

“It is therefore the Department’s strong view that MECO be excluded from the coverage of Senate Bill 2640 so as not to adversely affect our bilateral relations with both China and Taiwan,” the Secretary added.

It was House Minority Leader Edcel Lagman, who raised del Rosario’s letter, in the hearing.

At first, Senator Franklin Drilon, chairman of the finance committee, was not receptive to the proposal, citing the alleged abuses by MECO officials.

In fact, Drilon said, he sat down with the Foreign Secretary to discuss the issue and the latter agreed to the language of the bill.

But Lagman insisted the Secretary’s position, saying that some MECO board members were also calling him by phone to echo the exclusion of the said office from the proposed law.

Drilon gave in, and eventually agreed to the exclusion of MECO from the bill.

The bicameral committee also agreed to exclude the economic zone authorities from the coverage of the bill.

At a press conference after the hearing, Drilon said the proposed measure would now be transmitted to the House of Representatives and the Senate for ratification either this Wednesday, or Monday next week.