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    FUNA v. MECO Digest

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    Donn Lin
    Funa v. MECO was a case where Funa requested audit reports from MECO assuming it was a GOCC. However, the SC held that while MECO performs public functions facilitating unofficial Taiwan relations, it is not owned or controlled by the government. MECO is incorporated as a non-stock corporation under the Corporation Code and its directors and officers are elected internally, not by the government. Therefore, MECO is a private entity tasked with Taiwan relations and not subject to COA audits as a GOCC.

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    FUNA v. MECO Digest

    Uploaded by

    Donn Lin
    50 views1 page
    Funa v. MECO was a case where Funa requested audit reports from MECO assuming it was a GOCC. However, the SC held that while MECO performs public functions facilitating unofficial Taiwan relations, it is not owned or controlled by the government. MECO is incorporated as a non-stock corporation under the Corporation Code and its directors and officers are elected internally, not by the government. Therefore, MECO is a private entity tasked with Taiwan relations and not subject to COA audits as a GOCC.

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    FUNA v. MECO digest

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    Funa v. MECO was a case where Funa requested audit reports from MECO assuming it was a GOCC. However, the SC held that while MECO performs public functions facilitating unofficial Taiwan relations, it is not owned or controlled by the government. MECO is incorporated as a non-stock corporation under the Corporation Code and its directors and officers are elected internally, not by the government. Therefore, MECO is a private entity tasked with Taiwan relations and not subject to COA audits as a GOCC.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    50 views1 page

    FUNA v. MECO Digest

    Uploaded by

    Donn Lin
    Funa v. MECO was a case where Funa requested audit reports from MECO assuming it was a GOCC. However, the SC held that while MECO performs public functions facilitating unofficial Taiwan relations, it is not owned or controlled by the government. MECO is incorporated as a non-stock corporation under the Corporation Code and its directors and officers are elected internally, not by the government. Therefore, MECO is a private entity tasked with Taiwan relations and not subject to COA audits as a GOCC.

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    © All Rights Reserved
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    of 1

    FUNA v.

    MECO

    • Brief History
    o Chinese civil war left the country with two governments, namely People's
    Republic of China (PROC) and Republic of China (ROC). The Philippines ended
    its official diplomatic relations with ROC and pursued its commitment to the One
    China policy of the PROC. However, the Philippines still maintained unofficial
    relations with Taiwan (ROC) on a "people to people" basis
    • Facts
    o Funa sent a letter to the COA requesting for a copy of the latest financial and
    audit report of the MECO invoking, for that purpose, his "constitutional right to
    information on matters of public concern." assuming that MECO being under the
    "operational supervision" of the Department of Trade and Industry (DTI) is a
    GOCC and thus subject to audit jurisdiction of the COA
    o Assistant Commissioner Naranjo revealed that MECO was "not among the
    agencies audited by any of the three Clusters of the Corporate Government
    Sector."
    o Petitioners filed the suit in his capacities as "taxpayer, concerned citizen, a
    member of the Philippine Bar and law book author."
    • Issue
    o W/N MECO is a GOCC or Government Instrumentality
    • SC HELD
    o MECO is not a GOCC or Government Instrumentality
    o MECO is Organized as a Non-Stock Corporation. Records disclose that MECO
    was incoporated as a non-stock corporation under the Corporation Code on 16
    December 1977. MECO Performs Functions with a Public Aspect. Public
    character of functions vested in the MECO cannot be doubted either. The MECO
    can even be said to partake of the nature of governmental functions. On behalf of
    the people of the Philippines, MECO currently facilitates unofficial relations with
    the people in Taiwan.
    o However, the MECO is Not Owned or Controlled by the Government
    Organization as a non-stock corporation and the mere performance of
    functions with a public aspect, however, are not by themselves sufficient
    to consider the MECO as a GOCC
    The fact of the incorporation of the MECO under the Corporation Code is
    key. It was correct in postulating that, as a corporation organized under the
    Corporation Code, it is governed by the appropriate provisions of the said
    code, its articles of incorporation and its by-laws. In this case, it is the by-
    laws of the MECO that stipulates its directors are elected by its members;
    its officers are elected by its directors; and its members other than the
    original incorporators, are admitted by way of a unanimous board
    resolution
    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

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