POLITICAL LAW AND PUBLIC INTERNATIONAL LAW

XIV. ELECTION LAW

C. Campaign

2. Prohibited Contributions

In Philippine Election Law, as governed by the 1987 Constitution, Omnibus Election Code (Batas Pambansa Blg. 881), and other related statutes such as Republic Act No. 7166 (Synchronized Elections Law), there are strict rules on prohibited contributions in relation to election campaigns. These rules are intended to ensure fairness in elections, protect public trust, and prevent undue influence from various entities or persons who may use financial power to influence election outcomes.

Below is a comprehensive breakdown of the topic:

A. Legal Framework

1987 Constitution
- Article IX-C, Section 2(7) gives the Commission on Elections (COMELEC) the power to "[register] political parties, organizations or coalitions and accredit citizens' arms of the Commission." It also grants COMELEC authority to "[determine] who may participate in the elections, and to supervise the elections to ensure free, orderly, and honest elections."
Omnibus Election Code (Batas Pambansa Blg. 881)
- The Omnibus Election Code (OEC) contains several key provisions regulating contributions, including limitations and prohibitions.
Republic Act No. 7166
- This law provides for synchronized national and local elections and establishes procedures for campaign finance, including rules on contributions and expenditures.
Republic Act No. 9006 (Fair Election Act)
- While primarily focused on election propaganda, it indirectly touches on contributions by regulating campaign expenditures, limiting the influence of excessive spending.
COMELEC Resolutions and Rules
- COMELEC regularly issues resolutions that detail the rules on campaign finance, including the proper disclosure and handling of contributions and the specific prohibited sources.

B. Definition of Contribution

Under the Omnibus Election Code, a contribution refers to:

Cash or in-kind donations for the benefit of a candidate, political party, or campaign committee. These may include money, materials, or services provided without compensation for the purpose of promoting a candidate or political cause.
Volunteer services are not considered contributions as long as they are genuinely voluntary and not paid.

C. Prohibited Contributions

The law explicitly identifies specific entities and individuals who are prohibited from making contributions to candidates, political parties, or campaign committees. These prohibitions are designed to avoid conflicts of interest and undue influence on public officials.

1. Foreigners and Foreign Entities

Foreign Nationals: No foreign national, whether an individual, corporation, or other business entity, is allowed to make contributions to any candidate, political party, or campaign.
Foreign Governments: Governments of foreign countries or any of their agencies or instrumentalities are prohibited from making contributions, directly or indirectly.

Rationale: The prohibition seeks to prevent external influences from affecting national sovereignty and electoral processes.

2. Public and Government Entities

Government Agencies and Owned or Controlled Corporations: Government offices, agencies, and corporations owned or controlled by the government are prohibited from making campaign contributions.
Government Officials and Employees: Public officials and employees are prohibited from contributing to election campaigns using public funds, directly or indirectly.

Rationale: This prevents the misuse of public resources for private political gain and ensures neutrality in government institutions.

3. Financial Institutions

Banks and Lending Institutions: Banks, financial institutions, insurance companies, and other entities engaged in financing are prohibited from contributing to campaigns.

Rationale: Financial institutions are in a position of power to grant or withhold financial support, which may unduly influence the actions of political figures, creating a conflict of interest.

4. Public Utility Corporations

Public utility corporations or entities operating under franchise or a license from the government are prohibited from making campaign contributions.

Rationale: Public utilities, due to their regulated nature, could exert significant influence on elected officials, leading to preferential treatment or regulatory bias.

5. Educational Institutions

Educational institutions that receive grants, subsidies, or any form of financial support from the government are prohibited from making contributions to political campaigns.

Rationale: The prohibition ensures that public education funds and resources are not diverted into political causes, protecting the integrity of public services.

6. Non-Governmental Organizations (NGOs) receiving Government Funds

NGOs or civil society groups that receive government funds or subsidies cannot contribute to election campaigns.

Rationale: The prohibition prevents the use of public funding or resources in supporting political causes, ensuring fairness and avoiding conflicts of interest.

7. Other Prohibited Entities under Special Laws

Broadcast and Media Companies: Entities engaged in mass media are prohibited from directly contributing to candidates or political parties. However, media outlets may sell airtime or advertising space, subject to limitations set by law (e.g., Fair Election Act).

Rationale: Media outlets, as major influencers of public opinion, must remain neutral to maintain fairness in the dissemination of information during campaigns.

D. Criminal Liability for Violating Prohibited Contributions

Violating the rules on prohibited contributions carries penalties, which include:

Administrative Sanctions:
- Disqualification from Office: Candidates who accept prohibited contributions may face disqualification or removal from office.
- Fines: Political parties and candidates may be fined for accepting contributions from prohibited sources.
Criminal Sanctions:
- Under the Omnibus Election Code, violators may face imprisonment, in addition to other penalties. Involvement in illegal campaign financing may also constitute election offenses, which carry severe penalties including imprisonment of one to six years.
- Individuals involved in such violations may also face permanent disqualification from holding public office.

E. Reporting and Disclosure of Contributions

COMELEC Reporting Requirements:
- Candidates and political parties are required to file a Statement of Contributions and Expenditures (SOCE) within 30 days after the elections, detailing all contributions received and expenditures made during the campaign.
- Failure to file the SOCE is penalized with fines, and repeated violations may lead to disqualification from holding public office.
Audits and Enforcement:
- COMELEC is empowered to audit the SOCEs to verify the legality of contributions. Undeclared contributions from prohibited entities may result in sanctions.

F. Legal Exemptions and Special Cases

Volunteer Services:
- Genuine volunteer services (i.e., services rendered freely without any form of compensation) are not considered contributions. However, if volunteers are paid or receive incentives, their services may be categorized as in-kind contributions, subject to applicable laws.
Personal Funds of Candidates:
- Candidates are allowed to use their personal funds for their campaigns, which are not considered prohibited contributions as long as these are duly reported in their SOCE.

Conclusion

The laws governing prohibited contributions in Philippine election campaigns are designed to uphold the principles of fairness, transparency, and accountability. By restricting contributions from foreign entities, government agencies, public utilities, and certain corporations, the legal framework aims to prevent undue influence on elections, ensuring that candidates win public office based on merit and public support, rather than the power of financial backers.

In enforcing these prohibitions, the COMELEC plays a crucial role in safeguarding the integrity of the election process by ensuring that all contributions are properly accounted for and come from lawful sources. Violations of these laws are met with stringent penalties, including disqualification and criminal charges, reinforcing the commitment to free and fair elections in the Philippines.