BY JENNIE L. ILUSTRE

WASHINGTON D.C. — Officials of the Millennium Challenge Corp. are meeting here next week with a delegation headed by Finance Secretary Gary Teves to discuss what it called a "fairly significant" decline in the control of corruption.

Control of corruption is one of 16 performance indicators to qualify for compact status under the Millennium Challenge Account, which was introduced by the US State department in 2004 to provide aid to countries that adopt and maintain good policies on good governance, economic freedom and social development.

The drop in the Philippines’ control of corruption was from 76 percent in fiscal year 2007 to 57 percent in FY 2008.

"That is, in fact, the very reason for the meetings next week," said Ambassador John J. Danilovich, MCC chief executive officer, although he noted the figure is still above the median.

The Philippines, which has achieved threshold status, is "technically eligible for compact," he added during his Jan. 20 press briefing here.

The last indicator assessment showed some serious declines with regard to corruption, he said.

"This causes us some concern because the drop in performance in fact was very dramatic," he said.

"We want to understand more clearly why that dramatic drop has occurred, understand what circumstances caused that to happen so we can have some clarity as to whether or not this precipitous drop is going to continue, or if there was some indicator irregularity, or if there are further strong reforms which the Philippine government needs to take in this regard to make sure that at the next period of assessment this summer, the indicator shows an upward trend," he said.

Interviewed at the Philippine embassy here hours after the press briefing, Minister Carlos D. Sorreta said, "By and large, we’ve improved over the years on all the categories."

He said the MCC assessments for 2007 and 2008 showed country has generally improved on 16 performance indicators under the categories of ruling justly, investing in people and economic freedom.

The Philippines received $22.1 million when it achieved threshold status.

Danilovich said MCC’s partnership with the Philippines is "all the more robust because the Philippine government, upon receiving the $20 million of our MCC threshold activity, pledged and participated with an equal amount of money – $20 million – to support this program."

"We’re continuing to look at the Philippines as a positive example of cooperation with the MCC," he added.

Since MCC started in 2004, it has approved 16 compacts with countries in Africa, Central America, Eurasia and the Pacific, totaling $5.5 billion. It has also approved 18 threshold programs totaling almost $400 million.