MANILA — House Deputy Minority Leader and Mamamayang Liberal Partylist Representative Leila de Lima has raised concerns over the diligence of the Commission on Elections (Comelec) after its Political Finance and Affairs Department (PFAD) ruled that no violation of the Omnibus Election Code occurred in the case involving Senator Chiz Escudero and campaign contributor Lawrence Lubiano.

The PFAD terminated its investigation into Lubiano’s P30 million donation to Escudero during the 2022 elections, concluding that the contribution did not breach the law. The department stated: “This office concurs that Mr. Lubiano is not Centerways, and Centerways is not Mr. Lubiano.”

“This Office recommends termination of this investigation, as there is no evidence to support a complaint that Section 95(c) of the OEC was violated by respondents Lubiano and Escudero,” the ruling added.

Section 95(c) of the Omnibus Election Code bars natural or juridical persons holding government supply or service contracts from making direct or indirect contributions to political campaigns. PFAD said there was no evidence Lubiano acted “merely as an instrumentality or alter ego of the corporation to perpetrate fraud or commit any act prohibited under Sec. 95(c) of OEC.”

The decision also cited the Revised Corporation Code, stating: “A corporation is an artificial being created by operation of law.”

“When respondent Lubiano contributed to the campaign of respondent Escudero, the former merely exercised a right that is personal to him,” PFAD said.

PFAD Short on Diligence?

De Lima, however, questioned the thoroughness of PFAD’s review.

“The Comelec-Political Finance and Affairs Department’s (PFAD) finding of no violation of the Omnibus Election Code on prohibited contributions on the part of Sen. Francis Escudero and contributor Lawrence Lubiano may have been short on diligence,” De Lima said.

She emphasized that the law covers both natural and juridical persons who have contracts with the government: “It does not prevent a natural person from being penalized under the law if that person as the beneficial owner of a corporate contractor donates to an election campaign.”

De Lima also questioned whether PFAD had examined the ownership structure of Centerways Construction and Development, Inc.: “I wonder if said Comelec office had looked into the ownership structure of Centerways Construction and Development, Inc. and found out if it is wholly owned by the donor, in which case they are one and the same. There is such a principle in law known as piercing the corporate veil.”

The former senator expressed hope that the Comelec en banc would take a closer look at the case: “In any case, the PFAD’s Resolution terminating the investigation of the case is merely recommendatory to the Comelec en banc, which is expected to further scrutinize the factual and legal issues involved.”

📷 Leila Delima FB