DFA defends RP ranking in MCC

Foreign Affairs Secretary Alberto Romulo defended yesterday the Philippines’ ranking for eligibility for the Millennium Challenge Account (MCA), saying the US knows the real figures and that the Philippines failed in three of 17 indicators because the median was changed and increased.

Speaking to reporters yesterday, Romulo said that the country’s performance on health and education was only based in 2007.

“Of the 17 criteria, we passed 14,” he said.

“That’s why we were reselected. What we did not pass are three criteria because it’s a moving upward target. In corruption we lost only by 0.01.

“That’s what we’ve missed. In education and health, we were not able to update. They based it solely on 2007. These three we did not pass because they changed and increased the median.”

Romulo said he had written US Secretary of State Condoleezza Rice to thank the US government for reselecting the country.

“I wrote Secretary Rice not to correct because they know the real figures but to thank them for reselecting us despite increasing the median,” he said.

The US government said the Philippines must pass the indicator criteria on corruption before the MCC will sign a compact program.

Last week, the US embassy clarified that the Philippines passed 14 of the 17 indicators for eligibility for the MCA Compact program but failed on corruption.

US embassy press attaché Rebecca Thompson said that the Millennium Challenge Corp. (MCC) Board agreed during its meeting last Dec. 11 that the Philippines remains eligible for developing a compact proposal.

“Contrary to news reports, the Philippines passed 14 of 17 indicators, but did not pass the one on corruption and must pass it,” she said.

Thompson said the MCC will not sign a compact until the country passes the indicator criteria on corruption.

“The Board also reiterated the importance of this principle with respect to all its partner countries,” she said.

The Board called upon the Philippine government to intensify its efforts to fight corruption and will closely monitor the country’s performance.

However, a Malacañang official said the “sloppy” US regulatory work resulted in the collapse of financial markets that requires $4 trillion in bailout money.

The collapse of the US financial system happened ironically during the watch of US Treasury Secretary Henry Paulson, who is also MCC vice chairman, the official added.

In September, the Philippine Embassy in Washington said the Philippines, Malawi and Timor Leste appealed to the US Senate for an increase in funding for the MCA to support their programs of strengthening democratic institutions in developing countries, reinforce the rule of law and liberalize the economies of its recipient partner countries.