HUMAN RIGHTS 1A

ATTY. J.P. DELA PASION

In the case of Funa vs MECO, the Supreme Court held that MECO is not a GOCC nor a government
instrumentality because it is not owned by the PH government. It is a sui generis private entity -
a non-governmental non-stock corporation. Although it is entrusted with a governmental
function to facilitate the country’s unofficial relations in Taiwan, it is not entirely a government
instrumentality. Thus, not all accounts of MECO are subject to the auditing power of CoA.
Having said that, MECO should be subjected to the auditing of COA as regards its collection of
verification and consular fees. Pertinent is the provision of the Administrative Code, Section
14(1), Book V thereof, which authorizes the COA to audit accounts of non–governmental entities
“required to pay xxx or have government share” but only with respect to “funds xxx coming from
or through the government.” The said fees collected by MECO are receivables of DOLE.
As to the verification fees: Under Section 7 of EO No. 1022, DOLE has the authority to collect
verification fees. But it entered into a series of MoA with MECO authorizing the latter to collect
such fees since the PH does not have an official post in Taiwan.

As to the consular fees: The authority behind “consular fees” is Section 2(6) of EO No. 15, s. 2001.
The said section authorizes the MECO to collect “reasonable fees” for its performance of consular
functions. Evidently, and just like the peculiarity that attends the DOLE “verification fees,” there
is no consular office for the collection of the “consular fees.” Thus, the authority for the MECO to
collect the “reasonable fees,” vested unto it by the executive order (EO No. 15, s. 2001)

CONCLUSION

The MECO is not a GOCC or government instrumentality. It is a sui generis private entity
especially entrusted by the government with the facilitation of unofficial relations with the
people in Taiwan without jeopardizing the country’s faithful commitment to the One
China policy of the PROC. However, despite its non–governmental character, the MECO handles
government funds in the form of the “verification fees” it collects on behalf of the DOLE and the
“consular fees” it collects under Section 2(6) of EO No. 15, s. 2001. Hence, under existing laws,
the accounts of the MECO pertaining to its collection of such “verification fees” and “consular
fees” should be audited by the COA.