Donate Not

Here's a warning to corporations: they are not supposed to donate campaign funds to any candidate or party.

           

The Securities and Exchange Commission  has partnered with the Commission on Elections  to monitor corporations to ensure they do not donate to any political party or candidate running in the May 2016 elections.

           

The SEC and the Comelec will formalize their partnership in a memorandum of agreement to be signed in the coming weeks.

           

Under the agreement, the Comelec will furnish the SEC all information on the expenditures of each candidate after the May 2016 elections. The SEC, in turn, will use the information to check whether or not there were corporate donors in the candidates’ lists of expenditures and political donations.

             

Prior to this agreement, corporations had been asking the SEC on whether or not donations are allowed.

          

In a legal opinion, the SEC reminded companies that “under Section 36 (9) of the Corporation Code of the Philippines, there is an absolute prohibition for corporations, both foreign and domestic from giving donations to any political party, candidate or for the purpose of any partisan political activity.”

           

The SEC earlier received a query on whether or not Section 95 of the Omnibus Election Code has repealed or amended Section 36 of the Corporation Code.

           

Section 95 of the Omnibus Election Code provides an enumeration of natural and juridical persons, including corporations who, because of benefits, privileges, licenses of franchise received from government, are prohibited from making contributions directly or indirectly for purposes of partisan political activity.

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