Lubiano-Escudero donation cleared by Comelec PFAD

MANILA, Philippines—The Political Finance and Affairs Department (PFAD) of 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 PFAD 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.

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 Marcos that were awarded most of the contracts for flood control projects in the country.

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.

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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 thru 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. /gsg/abc