Political Finance in the
Philippines:
Legal Framework
Basic Constitutional Principles
governing Political Finance in
the Philippines
• Equal Access to Opportunities for Public Service
[Art. II, Sec. 26, Phil. Const.]
– More Filipinos should be afforded the opportunity to
serve the public as government leaders and that
Money should not be the deciding factor in elections.
– Election Campaign must be affordable to more people
to encourage competent, deserving and well
intentioned citizens to seek public office.
• Accountability of Public Officers.
– Public office is a public trust. Public officers
and employees must at all times be
accountable to the people [Art. XI Sec. 1 Phil.
Const.]
– Direct relationship between quality of
governance and election expenditure.
Candidates must be transparent and
accountable to the people in the conduct of
their campaign.
• Accountability of Public Officers.
– Public office is a public trust. Public officers
and employees must at all times be
accountable to the people [Art. XI Sec. 1 Phil.
Const.]
– Direct relationship between quality of
governance and election expenditure.
Candidates must be transparent and
accountable to the people in the conduct of
their campaign.
• COMELEC as the independent state
institution mandated to enforce all laws
and regulations related to elections,
including campaign finance
regulations,….
– … … to investigate and prosecute cases of
violations of election laws.
– ……. and to recommend to the Congress
effective measures to minimize election
spending [Art. IX-C, Sec. 2 (1)(6)(7), Phil.
Const.]
Statutes governing Political
Finance
• Batas Pambansa Blg. 881 – The Omnibus
Election Code (OEC)
• Republic Act 7166 – Synchronized
Election Law for the 1992 Elections
• Republic Act 9006 – Fair Election Act
• COMELEC Resolution No. 7794
Definition of Basic Terms:
• Candidate - any person aspiring for an
elective public office, who has filed a
certificate of candidacy [Sec. 79 (a)
OEC]
• Election Campaign or Partisan Political
Activity - an act designed to promote the
election or defeat of a particular candidate
or candidates to a public office. [Sec. 79
(b) OEC]
Election Contribution
– gift, donation, subscription, loan, advance or
deposit of money or anything of value, or
– a contract, promise or agreement to
contribute, whether or not legally enforceable,
– use of facilities donated by other persons, the
money value of which can be assessed based
on the rates prevailing in the area
• for the purpose of influencing the results of
the elections [Sec. 94 (a), OEC]
Election Expenditure
– payment or delivery of money or anything of
value, or
– a contract, promise or agreement to make an
expenditure,
– use of facilities personally owned by the
candidate, the money value of the use of
which can be assessed based on the rates
prevailing in the area.
• for the purpose of influencing the results of
the election. [Sec. 94 (b) OEC]
Sources of Funds or the Income
Side of Political Finance
• Own Money of Candidate
• Donation or Election Contribution from
persons or corporation not prohibited by
law to give donations. Elections Donations
REPORTED TO COMELEC are exempt
from donor’s tax. [Sec. 13 RA 7166]
• From Fund Raising Activities
Election Contribution from the
following is prohibited
• Public or private financial institutions, but loans
in the ordinary course of business are allowed;
• Individuals or corporations operating a public
utility or in possession of or exploiting any
natural resources of the nation;
• Individuals or corporations who hold contracts or
sub-contracts to supply the government with
goods or services or to perform construction or
other works;
• Individuals or corporations who have been granted
franchises, or similar privileges or concessions by the
government;
• Individuals or corporations who, within one year prior to
the date of the election, have been granted loans in
excess of P100,000 by the government;
• 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. [Sec. 95, 81, 96
OEC]
• Soliciting funds from above sources is also
prohibited by law [Sec. 95, 96, OEC]
• Violation is an election offense punishable
by 1 to 6 years of imprisonment,
disqualification to hold public office and in
the exercise of right of suffrage.
Candidates involved can be disqualified
from being running in the elections. [Sec.
81, 95, 96, 262, 264, 68,OEC]
Prohibited fund raising for election
campaign during election period
• Holding dances, lotteries, cockfights, games,
boxing bouts, bingo, beauty contests,
entertainments, or cinematographic, theatrical or
other performances [Sec. 97, OEC]
• Violation is an election offense punishable by 1
to 6 years of imprisonment, disqualification to
hold public office and in the exercise of right of
suffrage. Candidates involved can be
disqualified from being running in the elections
[Sec. 97, 262, 264, 68, OEC]
Reportorial Requirements
• Election Contributors or Donors must report their
donation under oath to COMELEC within 30
days after the election, reflecting their true
name, stating the amount of each contribution,
the name of the candidate, agent of the
candidate or political party receiving the
contribution, and the date of the contribution.
[Secs 98, 99, OEC]
• Violation is an election offense punishable by 1
to 6 years of imprisonment, disqualification to
hold public office and in the exercise of right of
suffrage. [Sec. 98, 262, 264, OEC]