Lubiano-Escudero donation cleared by Comelec unit

MANILA, Philippines — The Commission on Elections (Comelec) found that there was no violation of the election code when Sen. Francis Escudero received a P30-million campaign donation from Lawrence Lubiano, president of Centerways Construction and Development Inc.

In a nine-page resolution released Wednesday, the Political Finance and Affairs Department (PFAD) of the Comelec recommended terminating the probe into the case, citing a lack of evidence to support a complaint that Escudero and Lubiano violated Section 95 of the Omnibus Election Code.

In an ambush interview with reporters, Commissioner Rey Bulay explained that because the investigation was conducted motu propio, making it an “ordinary administrative proceeding,” the Comelec en banc will have to adopt the resolution by PFAD due to a lack of a “contrary opinion.”“Basically, if it is not adversarial, no one made a [motion for reconsideration] to this recommendation, we have no recourse. PFAD is Comelec. Comelec is PFAD. It (the resolution) will be adopted,” he said.“That’s why it did not go to the en banc because there is no contrary opinion. That’s why we had no action. What I said when it was forwarded to me as Commissioner in charge of SOCE (Statement of Contributions and Expenditures) is ‘return with no action,’ with ‘instruction to promulgate,’” he added.

READ: Comelec show-cause order issued vs Escudero over P30M donation

The case originated after Escudero admitted to receiving a P30-million campaign donation from Lubiano, president of Centerways Construction and Development Inc., one of the top 15 government contractors named by President Ferdinand Marcos Jr. that were awarded most of the contracts for flood control projects in the country.

Section 95 (C) of the election code states that among the prohibited contributions include those that come from “natural and juridical persons who hold contracts or sub-contracts to supply the government or any of its divisions, subdivisions or instrumentalities, with goods or services or to perform construction or other works.”

But according to PFAD, stock or non-stock corporations are “treated as separate and distinct legal entities from the natural persons composing them.”

This meant that Lubiano, while serving as president of Centerways, retained a “separate legal personality” of his own.

At the same time, Centerways has a legal personality that is distinct and independent of its stockholders and officers.

READ: Comelec: Chiz affidavit says he thought P30M was ’private fund’

When Lubiano contributed to the campaign of Escudero in the 2022 senatorial elections, the PFAD said he had “merely exercised a right that is personal to him.”

“There is no evidence establishing that the funds used in the contribution originated from Centerways, or that its corporate money crept into the campaign funds of respondent Escudero through the contribution made by respondent Lubiano,” the department said.

“Mere allegation, unaccompanied by any proof, is insufficient to disregard the separate legal personality of either respondent Lubiano or Centerways,” it added.

Moreover, the Comelec department found that Lubiano, in his personal capacity, was “neither shown to have any existing contract or sub-contract with the government for the supply of goods or services, nor that he is engaged in the performance of construction or public works.”It added that there was no evidence to establish that Lubiano “may have been used indirectly by Centerways to contribute to the campaign coffers of respondent Escudero.”“Given that no evidence has been gathered to show the contrary, this Office is constrained to apply the law as it stands, without resorting to unwarranted assumptions or interpretations,” stated the resolution. /gsg/abc/apl