WASHINGTON DC - The Philippines is re-hiring the influential Washington DC lobby group Covington & Burling LLP to help win a reported $439 million Compact with the Millennium Challenge Corporation (MCC) and convince the US Congress to lift human rights conditions for military aid, among others.

Ambassador Willy Gaa posted the notice on the Philippine Embassy website – fulfilling a requirement before the government can close the deal with former US Ambassador Stuart Eizenstat, a senior partner at Covington & Burling LLP and chair of its international practice.

Eizenstat said they played “an important role” in pushing the $198 million lump sum payment for thousands of Filipino World War II veterans, as well as the resolution of a longstanding tax dispute between the Philippines and New York City.

Eizenstat was chief White House domestic policy adviser to President Jimmy Carter, US Ambassador to the European Union and Deputy Secretary of the Treasury under the Clinton administration.

Covington & Burling, established in 1919, is one of the oldest and most influential law firms in Washington DC.

The lobbying contract will run for 6 months for an undisclosed amount. The previous contract in January 2008, which lasted 6 months, cost $500,000.

Addressing RP sore points

“There is nothing unusual. This is just how it’s done here,” explained Consul General Domingo Nolasco.

The website OpenSecrets.org estimated total spending to lobby Congress and federal agencies reached $2.5 billion in 2009 – actually a decline from a peak of $3.3 billion in 2008.

Covington isn’t the only group being used by Philippine interests. Sorini, Samet & Associates is working on Capitol Hill for duty-free exports of Philippine apparel using US-made textiles.

Also, the Philippines reportedly tapped US apparel executive Fiona Ki to identify fabric needs in the Philippines for US textile mills.

If that bill pushes through, it could be worth $1 billion for Philippine garment manufacturers.

Eizenstat’s lobby efforts are expected to center on addressing two key sore points against the Arroyo administration – corruption and human rights.

The country is on the verge of winning Compact status with the MCC, but the government flunked the critical corruption test for 2 years in a row.

Approval is expected in Fiscal 2010, which actually started September 2009, but the Philippines failed to make the grade at the last review in December.

More economic, less military aid for RP

Eizenstat will also be busy convincing US lawmakers to lift human rights conditions to the $30 million Foreign Military Financing (FMF) to the Philippines.

They put the conditions after Filipino church leaders and human rights activists testified against extrajudicial killings during a rare Senate hearing on Capitol Hill.

The US Congress placed a $2 million caveat to military aid earmarked for the Philippines.

The State Department must certify the government is not using the money to go after its political enemies or suppress legitimate dissent.

The Obama administration proposes to increase development assistance to the Philippines – to $71.3 million this year – but wants to cut military aid to $15.6 million.

The State Department also recommended a reduction in military assistance for 2009 but Philippine lobbying convinced Congress to restore the cut.

The US Congress appropriated $32 million to help the Armed Forces of the Philippines (AFP) last year, an increase from the $27.7 million in 2008.

The 2010 foreign operations budget also provides higher amounts for International Military Education & Training (from $1.5 million to $2 million); Non-proliferation and Anti-terrorism programs (from $4.6 million to $5.6 million); and International Narcotics Control & Law Enforcement (from $794,000 to $2.4 million).