The move came amid indications that Zosimo Paredes will be replaced as executive director of the VFA Commission (VFAcom) in an effort to strengthen the monitoring body.
Paredes has said he is ready to be replaced following the custody fiasco.
A senior Department of Foreign Affairs (DFA) official said an executive order creating another office to replace the VFAcom will be signed soon by President Arroyo.
Sen. Miriam Defensor-Santiago said the President had agreed to abolish the VFAcom and replace it with another body.
Romulo confirmed this, saying: "I understand the President has agreed to this (recommendation)."
Malacañang, however, would not confirm that Mrs. Arroyo had agreed to abolish the VFAcom.
Executive Secretary Eduardo Ermita also said he was not aware of any executive order being drafted to abolish the committee.
Secretary to the Cabinet Ricardo Saludo added he had just spoken with Paredes who seemed unaware of the supposed moves to abolish the office. "I don’t think it’s true," Saludo said.
Ermita, however, admitted it was possible that DFA Secretary Alberto Romulo had discussed the issue directly with the President.
"I would not wish to contest what Secretary Romulo had said during the (Senate) hearing (yesterday). I’ll have to double check," Ermita said. "The procedure would always be that if there is such a move, the secretary of foreign affairs should be the one to initiate such a move recommending to the President what to do with the VFAcom.
"As of now, what I know is it has not been abolished. We had a talk about the role of the VFA in connection with the Subic rape case, and the discussion on whether it should stay or be abolished never came up last week during our meeting," Ermita added.
Romulo told the Senate yesterday he would support whatever decision Congress makes in connection with the VFA.
"I respect the decision of the Legislative Oversight Committee on the VFA panel in its recommendation. I believe that would be taken up by both the Senate and the House. Whatever Congress finally decides will go to the President. It has been helpful in our talks with our counterparts," Romulo told the lawmakers.
The oversight committee earlier approved a resolution recommending to Congress the issuance of a notice of termination and renegotiation of the VFA.
Santiago, who co-chairs the committee, pointed out the VFA had failed to include a renegotiation or revision clause that is present in similar agreements entered into by the United States with other countries.
The oversight committee believes the VFA is lopsided in favor of the US since it allows American troops charged with crimes while taking part in military exercises here to remain in US custody until legal proceedings are completed.
Romulo said he was in favor of a renegotiation of the VFA.
He also agreed with the position taken by several lawmakers that custody of accused US soldiers should go to the Philippines in "extraordinary cases" after the custody issue is relayed to the US government.
Romulo said that up to now, Washington has not replied to a second request of the Philippine government to take custody of the accused US Marines.
Paredes caught the ire of Santiago and other members of the oversight committee for his perceived "inconsistent" positions regarding the rape case in connection with the VFA.
Santiago slammed Paredes for acting like the head and spokesperson for the VFAcom before the media. She said the VFAcom is headed by the secretary of foreign affairs.
"I have given instructions that he should stop issuing statements contradicting his superiors. I have also given instructions that the US Embassy should stop dealing with this executive director. The commission will soon be abolished," Santiago quoted Romulo as saying.
The US government has no involvement in the VFAcom.
"They do not like it at all," the official, who is privy to meeting with embassy officials, said. "We stand to lose a lot if we abrogate the VFA. Not only a lot, but all. Aside from that, it will have a very serious effect on bilateral relations... they have hinted during our meetings that they are not happy with what is happening."
US Embassy spokesman Matthew Lussenhop, however, said Washington is focused on working closely with the Philippines to fulfill obligations under the VFA despite the planned abrogation of the agreement.
"We are not talking about consequences," he said. "Our focus right now is working with the Filipino people and the assistance for the Philippines."
He declined to comment on the purported warning about a possible aid cut attributed to an unnamed embassy official.
Despite the planned abrogation, Washington continues to await Manila’s recommendation to the Millennium Challenge Corp. board for US aid. All US aid programs involving the Philippines remain on track.
The US Embassy has cited the VFA in retaining custody of the four Marines until legal proceedings are completed. The embassy has promised to make the four available to the court whenever needed at the trial.
A 22-year-old Filipina is accusing them of raping her in November last year, shortly after the servicemen took part in joint maneuvers in the former US naval base in Subic Bay.
The soldiers denied raping her, but one of them has admitted to having consensual sex with the woman, court records show.
The case is being closely followed in this former American colony, and anti-US sentiment is being fanned by street protests.
The controversy also comes just weeks before US troops are to be deployed in joint anti-terror exercises in Jolo, a stronghold of al-Qaeda linked militants. – With Aurea Calica, Pia Lee-Brago, AFP