Comelec caps campaign donations of big biz
DOMESTIC corporations can no longer go sky is the limit when they give campaign donations to political parties, party-list groups and candidates during electoral exercises, the Commission on Elections (Comelec) said yesterday.
Based on Resolution No. 10772, the Comelec en banc said domestic firms may only donate funds equivalent to up to five (5) percent of their income from the period prior to the elections.
The poll body said the limitation is based on provisions of the revised Corporation Code of the Philippines, which states that “every corporation incorporated has the power and capacity to make reasonable donations” to any political party, party-list, candidate, or for purposes of partisan political activity.
“Reasonable donation shall mean a contribution or donation given by domestic corporation to any political party, party-list, or candidate not exceeding five percent (5%) of the corporation’s taxable income on a taxable year immediately preceding elections from trade, business, or profession,” the Comelec resolution stated.
In addition, the poll body said that every domestic corporation that is allowed by law to give contribution or donation, whether in cash or in kind, must receive or demand to receive an official receipt from political party, party-list, candidate, or their duly authorized representative to whom the contribution is made.
Similarly, it said donating firms must file a report of contribution with the Comelec’s Campaign Finance Office, in digital and hard copy, within 30 days following the day of the elections.
“The political party, party-list, candidate, or their duly authorized representative, who received the contributions, whether in cash or in kind, may file the Reports of Contributions together with their campaign finance disclosure reports on behalf of their donors or contributors,” said the Comelec.
It said that “the Report of Contributions must be signed by the person authorized by the domestic corporation by virtue of a Board Resolution and executed under oath.”
The Comelec said the required public disclosure of political finances by political party, party list, or candidate is based on the policies of transparency and good governance.
The poll body reminded candidates and political parties that there are still companies that are prohibited from making campaign contributions.
They include public or private financial institutions, companies operating a public utility or in possession of or exploiting any natural resources of the nation, corporations which hold contracts or sub-contracts to supply the government with goods or services or to perform construction or other works, and those which have been granted franchises, incentives, exemptions, allocations or similar privileges or concessions by the government.
Also prohibited are institutions that within one year prior to the date of the election have been granted loans or other accommodations in excess of P100,000 by the government, including government-owned or controlled corporations; educational institutions which have received grants of public funds amounting to no less than P100,000.00; officials or employees in the civil service, or members of the Armed Forces of the Philippines; and foreigners and foreign corporations.
“It shall be unlawful for any person to solicit or receive any contribution from any of the persons or entities enumerated herein,” said the Comelec.
Violations of the said Resolution shall constitute an election offense and shall be punishable by imprisonment of one to six years.
