CAMPAIGN FINANCE AND DISCLOSURE

On January 16, 2013 Resolution No. 9616 was issued by the Commission on Elections as the General Instructions for the implementation, monitoring, investigation, prosecution of any  violation of Campaign Finance Rules as embodied in Resolution No. 9476, as amended, including the sample of proper  forms to be utilized by all concerned.

RULES AND REGULATIONS 
GOVERNING CAMPAIGN FINANCE AND DISCLOSURE

Posted 11-28-12

     This rule issued by the Commission on Elections under Resolution No. 9476 dated June 22, 2012 applies to all election contributions and expenditures in connection with the conduct of elections and shall be construed to promote effective and efficient implementation of keeping election spending in accordance with existing rules and pertinent election laws.

   Every person giving contribution to any candidate, treasurer of political party or to the authorized representative of a candidate of political party shall file a Report of Contributions and Expenditures with the offices of the Commission on Elections where candidate whom the contributor has made his contribution to had filed his certificate of candidacy except for National positions, which should be filed to the Campaign Finance Unit, within thirty days following the day of elections. The report shall be in prescribed form and under oath. Any contribution in cash or in kind duly reported shall not be subject to the payment of donor’s tax.

CONTRIBUTIONS

For purposes of political activity no contribution shall be made directly or indirectly by the following:

1. Public or private financial institutions. However, this does not prevent  the making of any loan by private financial institutions legally in the business of lending money, provided the loan is made in accordance with the laws and regulations and in the ordinary course of business;

2. Natural or juridical persons operating a public utility or in a possession of or exploiting any natural resources of the nation; who holds contracts or subcontracts to supply the government or any of its divisions, subdivisions or instrumentalities, with goods or services or to perform construction or other works; who have been granted franchises, incentives, exemptions, allocations, or similar privileges or concessions by the government or any of its divisions, subdivisions, or instrumentalities, including government-owned or controlled corporations; or who, within one year prior to the date of the elections, have been granted loans or other accommodations in excess of P100,000.00 by the government  or any of its divisions, subdivisions, or instrumentalities, including government –owned or controlled corporations; 

3. Educational institutions which have received grants of public funds amounting to no less than Php100,000.00;
4. Official and employees in the Civil Service or members of the Armed Forces of the Philippines; and
5. Foreigners and foreign corporations.

SOLICITATIONS OR RECEIPT OF CONTRIBUTIONS

Solicitations and receiving of contributions, directly or indirectly is also prohibited to:

1. Any person or entity as enumerated above;

2. Any aid or contribution of whatever form or nature from any foreign national, government or entity for the purpose of influencing the results of the elections;

3. Any gift , food, transportation, contribution or donation in cash or in kind from any candidate or from his campaign manager, agent or representative, or any person acting in their behalf within the second degree of consanguinity or affinity, except normal and customary religious stipends, tithes or collections on Sundays and/or other designated collection days or scholarship.

RAISING OF FUNDS

     Its is unlawful for any  person to hold dances, lotteries, cockfights, boxing bouts, bingo, beauty contests, entertainments or cinematographic , theatrical or other performances for the purpose of raising funds for an election campaign or for the support of any candidate from the commencement of election period up to and including election day.

     Any candidate, his or her spouse, or any relative within the second civil degree of consanguinity (up grandparents, grandchildren, brothers and sisters) or affinity (up to grandparents-in-law, or  grandchildren-in-law, brothers-in-law and sister-in-law) or his campaign manager, agent or representative shall, during campaign period, on the day before, and on the day of the election, directly or indirectly, is prohibited to make any donation, contribution or gift, in cash or in kind, or undertake or contribute to the construction or repair of roads, bridges, schoolhouses, puericulture centers, medical clinics and hospitals, churches or chapels, cement pavements or any structures for public use or for the use of any religious or civic organizations. This prohibition includes and applies also to party treasurer, agents or representatives.

     Excluded from this prohibition are normal and customary religious dues and contributions, such as religious stipends, tithes or collections on Sundays or other designated collection days, as well as periodic payments for legitimate scholarships established and school contributions habitually made before the prohibited period.

EXPENDITURES

Authorized expenses of Candidates and Parties

The aggregate amount that a candidate or party may spend for election campaign are as follows:

1. President and Vice-President – Ten Pesos (Php10.00) for every registered voters.

2. For other Candidates – Three (Php3.00) for every voter currently registered in the constituency where the candidate filed his certificate of candidacy.

3. Candidate without any political party and without support from any political party – Five (Php5.00) for every voter currently registered in the constituency where the candidate filed his certificate of candidacy.

4. Political parties and party-list groups – Five (Php5.00) for every voter currently registered in the constituency or constituencies where it has official candidates.

Coverage of  Expenses

    The expenses covered referred to shall include those incurred or caused to be incurred by the candidate, whether in cash or in kind, including the use, rental or hire of land, water or aircraft, equipment, facilities, apparatus and paraphernalia used in the campaign.

    If the foregoing is owned by the candidate, his contributor or supporter, and the use of which are given free of charge to the candidate, the candidate shall assess and declare the amount commensurate with the expenses for the use thereof, based on the prevailing rate in the locality and shall be included in the total expenses incurred by the candidate.

 Lawful Expenditures

1. Travelling expenses of the candidates and campaign personnel in the course of the campaign and for personal expenses incident thereto;

2. For compensation of campaigners, clerks, stenographers, messengers, and other persons actually employed in the campaign;

3. Telegraph and telephone tolls, internet access, postages, freight and express delivery charges;

4. Stationery, printing and distribution of printed materials relative to the candidacy;

5. Employment of poll watchers;

6. Rent, maintenance and furnishing of campaign headquarters, office of place of meetings;

7. Political meetings and rallies and the use of sound systems, lights and decorations during said meeting and rallies;

8. Newspaper, radio, television and other advertisements for purposes of promoting the candidacy, including website or internet placements, subject  to existing rules and regulations on broadcast advertising;

9. Employment of Counsel;

10. Copying and classifying lists of voters, investigating and challenging the right to vote of persons registered in the lists; and

11. Printing sample ballots in such color, size and maximum number as may be authorized the Commission on Elections.

PUBLIC RALLY

                Within seven (7) working days after holding any public rally, the candidate or party concerned shall submit to the Election Officer concerned to the place where the rally was held a Statement of Expenses incurred in connection therewith, in a prescribed form by the Commission.

                The Candidates and Parties shall notify the Election Officer assigned to the place where they intend to organize a public rally of their intent to hold such public rally. The notice must be submitted three (3) working days prior to the date thereof, and must include the venue and is address, as well as a commitment to submit the above prescribed Statement of Expenses.

EFFECTS OF FAILURE TO FILE

                No person elected to any public office shall enter upon the duties of his office until he has filed the Statement of Contributions and Expenditures. The same prohibition applies to party which nominated the winning candidates failure to file the required statement within thirty (30) days from the conduct of elections. Winning candidates shall be issued a certificate of submission upon filing their certificate of Contribution and Expenditures, a copy of which must be submitted upon assumption to office.

PENALTY

                Aside from the above effect of failure to file a Statement of Contribution and Expenditures and other required reports in connection with the electoral expenditures it shall constitute also as an administrative offense for which the offenders shall be liable for a penalty of administrative fine ranging from One Thousand Pesos (Php1,000.00) to Thirty Thousand Pesos (Php30,000.00), at the discretion of the Commission.

                For the commission of a second or subsequent offense, the administrative fine shall be from Two Thousand Pesos (Php2,000.00) to Sixty Thousand Pesos (Php60,000.00), at the discretion of the Commission. In addition, the offender shall be subject to perpetual disqualification to hold public office.

                The amount of the administrative fine to be imposed on the candidate who failed to file his or her Statement of Contribution and Expenditures shall depend on the elective position he or she vied for and whether the failure to do so was his or her first or second offense:

ELECTIVE POSITION	1st Offense	2nd Offense
President	30,000.00	60,000.00
Vice President	30,000.00	60,000.00
Senators	30,000.00	60,000.00
Governors & Vice Governors	25,000.00	50,000.00
House of Representatives-LDistrict	20,000.00	40,000.00
House of Representatives-Party-List	30,000.00	60,000.00
Sangguniang Panlalawigan	20,000.00	40,000.00
City Mayors	20,000.00	40,000.00
City Vice Mayors	20,000.00	40,000.00
Sangguniang Panglungsod	15,000.00	30,000.00
Municipal Mayors	10,000.00	20,000.00
Municipal Vice Mayors	10,000.00	20,000.00
Sangguniang Bayan	10,000.00	20,000.00

                The fine shall be paid within thirty days (30) days from receipt of notice of such failure; otherwise, it shall be enforceable by a writ of execution issued by the COMELEC.

SOURCE : Comelec Resolution No. 9476 dated June 22, 2012

IN THE MATTER OF AMENDMENTS TO RESOLUTION NO. 9476, ALSO KNOWN AS THE RULES AND REGULATIONS GOVERNING CAMPAIGN FINANCE AND DISCLOSURE.
Resolution No. 9558

Promulgation: 23 November 2012

---

This pertains to COMELEC Resolution No. 9476 promulgated on 22 June 2012 entitled “Rules and Regulations Governing Campaign Finance and Disclosure In Connection with the 13 May 2013 National and Local Elections and Subsequent Elections Thereafter”, particularly paragraph 3, Section 5 of Rule 8 and Section 2 of Rule 11 thereof.

The Commission En Banc RESOLVED, as it hereby RESOLVES to:

(1) Include in the scale of administrative fines political parties who fail to comply with Section 14 of Republic Act No. 7166, thereby amending the third (3rd) paragraph of Section 5, Rule 8, of COMELEC Resolution No. 9476, which will now read as:

“RULE 8 – FILING OF STATEMENTS OF CONTRIBUTIONS AND EXPENDITURES
xxx

Section 5. Penalty. – xxx

The amount of the administrative fine to be imposed on the candidate who failed to file his or her statement or report or on the party whose treasurer failed to file the statement or report on its behalf as herein required shall depend on: (1) the elective position he or she vied for, or in the case of political parties, the size of its constituency; and (2) whether the failure to do so was his or her or the party’s first or second offense:

	1st offense	2nd offense
President	30,000.00	60,000.00
Vice President	30,000.00	60,000.00
Senators	30,000.00	60,000.00
Governors & Vice Governors	25,000.00	50,000.00
House of Representatives –  Legislative Districts	20,000.00	40,000.00
House of Representatives –  Party-List System	30,000.00	60,000.00
Local Political Parties	20,000.00	40,000.00
Regional Political Parties	25,000.00	50,000.00
National Political Parties	30,000.00	60,000.00
Sangguniang Panlalawigan	20,000.00	40,000.00
City Mayors	20,000.00	40,000.00
City Vice Mayors	20,000.00	40,000.00
Sangguniang Panglungsod	15,000.00	30,000.00
Municipal Mayor	10,000.00	20,000.00
Municipal Vice Mayors	10,000.00	20,000.00
Sangguniang Bayan	10,000.00	20,000.00

(2) Amend Section 2 of Rule 11 to apply prospectively, which will now read as:

“RULE 11 – REPEALING CLAUSE AND EFFECTIVITY
xxx

Section 2. Transitory Provision. – These rules shall apply to the May 2013 elections and all subsequent elections thereafter. The administrative fines as provided in this Commission’s Minute Resolution No. 93-1801 promulgated on 29 July 1993 will continue to apply to violations of campaign finance laws as found in Republic Act No. 7166 and the Omnibus Election Code committed prior to the May 2013 elections.

SOURCE Comelec Resolution No. 9558 dated November 23, 2012

 FAIL NOT UNDER PENALTY OF LAW! IGNORANCE OF LAW EXCUSES NO ONE!