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. However, it is entrusted by the government to facilitate its
unofficial relations in Taiwan. Thus, not all accounts of MECO are subject to
the auditing power of CoA.
Although MECO is not a government instrumentality, it is nevertheless
subject to the auditing of COA only 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
nongovernmental 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 countrys faithful commitment to the One
China policy of the PROC. However, despite its nongovernmental 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.