Filtered by: Topstories
News

Bicam excludes MECO from GOCC bill coverage


Lawmakers had agreed to exclude the Manila Economic and Cultural Office (MECO), Manila’s de facto embassy in Taiwan, from the coverage of a proposed measure seeking to create a body that will govern government-owned and controlled corporations (GOCCs). “Because of the diplomatic and political implications... we have agreed to the exclusion of MECO," Sen. Franklin Drilon, chairman of the congressional oversight committee on public expenditures, said after Wednesday’s bicameral conference on the disagreeing provisions of the proposed GOCC Governance Act of 2011. The bicameral conference had approved the GOCC bill but Drilon proposed the panel needed to reconvene because of the MECO issue. In a letter to House appropriations committee chairman Cavite Rep. Joseph Emilio Abaya, Foreign Affairs Secretary Albert del Rosario expressed his department’s “strong view" that MECO should be excluded from the coverage of the measure because it might affect the country's bilateral relations with China and Taiwan. “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 dated May 24. MECO was organized as a private non-stock corporation in December 1975 and was tasked to represent the Philippine interests in Taiwan. Its creation as a private non-stock corporation was one of the preconditions when the Philippines established diplomatic ties with China. Del Rosario said that if MECO is classified as a government instrumentality with corporate powers, it will accord MECO official status that will “contravene" the purpose for which it was originally created. Because of this, Drilon said they will exclude MECO from the coverage of the GOCC Governance Act of 2011. He noted, however, that he will still closely monitor the operations of MECO. “I hope that they stop this practice of not turning over to the national coffers their excess funds. Public funds should be remitted to the public treasury. I will file a case of malversation of public funds if they continue this practice," he said. Other disagreeing provisions Under the GOCC Governance Act of 2011, a Governance Commission for GOCCs (GCG) shall be created to oversee GOCCs and government financial institutions (GFI). The GCG shall be responsible for the determination of the compensation, per diems, allowances, and bonuses of the members of the board of directors or trustees of state firms. Also under the proposed bill, members of the GOCC board of directors shall only have a tenure of one year, which House Minority Floor Leader Albay Rep. Edcel Lagman said should not be determined by the GCG. “I think that is not a proper delegation that can be challenged before the court," he said during Wednesday’s bicameral conference, adding that it might overstep the powers of the Civil Service Commission. Drilon, however, said he believes that they can defend the constitutionality of the bill. He likewise said that they are actually “safeguarding" the tenure of civil service-covered employees. “The rank and file employees are not covered by the law," he said. Lagman said he and his colleagues will not sign the bill with this contesting provision, but Drilon shrugged this off, saying they will be able to pass the bill and ratify it in the Senate and House of Representatives probably later in the day or on Monday. “There is no effect because we rule by the majority," he said. Urgent bill Last year, President Benigno Aquino III, through Executive Order 7, suspended the bonuses and allowances of GOCC executives after he revealed in his first State of the Nation Address (SONA) the alleged excessive perks received by officials of the Metropolitan Waterworks and Sewerage System (MWSS) under the previous administration. In February this year, President Aquino signed an executive order standardizing the salaries and bonuses of GOCC and GFI executives. Executive Secretary Paquito Ochoa Jr. said then that the EO “seeks to set the guidelines that will standardize pay rates to prevent abuse." The President had earlier certified as urgent the GOCC bill. There are currently 157 GOCCs in the country. — KBK/LBG, GMA News

Tags: meco, gocc, goccbill
LOADING CONTENT