Republic of the Philippines

COMMISSION ON ELECTIONS
Manila

RULES AND REGULATIONS ABALOS, Benjamin S. Chairman

GOVERNING ELECTORAL BORRA, Resurreccion Z. Commissioner
CONTRIBUTIONS AND TUASON, Jr. Florentino A. Commissioner
EXPENDITURES IN CONNECTION BRAWNER, Romeo A. Commissioner
WITH THE MAY 14, 2007 SARMIENTO, Rene V. Commissioner
NATIONAL AND LOCAL FERRER, Nicodemo T. Commissioner
ELECTIONS.

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PROMULGATED: 27 December 2006

RESOLUTION NO. 7794

Pursuant to the powers vested in it by the Constitution, the Omnibus

Election Code, and other election laws, the Commission on Elections
RESOLVED to promulgate, as it hereby RESOLVES to promulgate, the following
rules and regulations governing electoral contributions and expenditures in
connection with the May 14, 2007 national and local elections:

SECTION 1. DEFINITION OF TERMS. - The following terms are hereby

defined as follows:

(a) “Contribution” includes a gift, donation, subscription, loan, advance

or deposit of money or anything of value, or a contract, promise or
agreement to contribute, whether or not legally enforceable, made
for the purpose of influencing the result of the elections but shall not
include services rendered without compensation by individuals
volunteering a portion or all of their time in behalf of a candidate or
political party. It shall also include the use of facilities voluntarily
donated by other persons, the money value of which can be
assessed based on the rate prevailing in the area.

(b) “Expenditure” includes the payment or delivery of money or

anything of value, or a contract, promise or agreement to make an
expenditure, for the purpose of influencing the results of the
election. It shall also include the use of facilities personally owned
by the candidate, the money value of the use of which can be
assessed based on the rates prevailing in the area.
 (c) “Person” includes an individual, partnership, committee,
association, corporation, and any other organization or group of
persons.

SEC. 2. True Name of Contributor Required. – No person shall make

any contribution in any name except his own. No candidate or treasurer of any
political party shall receive a contribution or enter or record the same in any
name other than that of the person by whom it was actually made.

SEC. 3. Report of Contributions. – Within thirty (30) days after the day of
the election (on or before June 13, 2007), every person giving contribution to any
candidate, treasurer of the party or to the authorized representative of such
candidate or treasurer shall file with the Commission on Elections (COMELEC) a
report, under oath, stating his residential and business address, the amount of
each contribution, the name of the candidate, agent of the candidate or political
party receiving the contributions and the date of the contribution. (See Annex “A”
for sample form)

Any contribution in cash or in kind to any candidate or political party or

coalition of parties for campaign purposes, duly reported to the COMELEC, shall
not be subject to the payment of donors and donees tax.

SEC. 4. Prohibited Contributions. – No contribution for purposes of

partisan political activity shall be made, directly or indirectly by any of the
following:

(a) Public or private financial institutions. However, nothing herein shall

prevent the making of any loan to a candidate or political party by
any such public or private financial institutions legally in the
business of lending money, and that the loan is made in
accordance with laws and regulations and in the ordinary course of
business;

(b) Natural and juridical persons operating a public utility or in

possession of or exploiting any natural resources of the nation;

(c) Natural and juridical persons 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;
 (d) Natural and juridical persons 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;

(e) Natural and juridical persons 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;

(f) Educational institutions which have received grants of public funds

amounting to no less than P100,000.00;

(g) Officials and employees in the Civil Service or members of the

Armed Forces of the Philippines; and

(h) Foreigners and foreign corporations.

SEC. 5. Prohibited Solicitations or Receiving of Contributions. – No

person or entity, public or private, shall solicit or receive, directly or indirectly. –

(a) Any contribution for purposes of partisan political activity, from any
of the persons or entities enumerated in the immediately preceding
section;

(b) 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; or

(c) 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 from February
13, 2007, in case of candidates for senators and party-list; and from
March 30, 2007, in case of candidates for Member, House of
Representatives and local positions, up to May 14, 2007, except
normal and customary religious stipends, tithes or collections on
Sundays and/or other designated collection days.
 SEC. 6. Prohibited Raising of Funds. - It is unlawful for any person to
hold dances, lotteries, cockfights, games, 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 January 14, 2007 up to and including election day.

SEC. 7. Authorized Expenses of Candidates and Political Parties. –

The aggregate amount that a candidate or registered political party may spend
for election campaign shall be as follow:

(a) For official candidates of political parties - Three Pesos (Php3.00)

for every voter currently registered in the constituency where the
candidate filed his certificate of candidacy;

(b) For candidates without any political party and without support from
any political party - Five Pesos (P5.00) for every voter currently
registered in the constituency where the candidate filed his
certificate of candidacy; and

(c) For political parties and party-list groups. – Five pesos (P5.00) for
every voter currently registered in the constituency or
constituencies where they have official candidates or nominees.

The expenses herein 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 land, water or aircraft, equipment, facilities, apparatus and

paraphernalia used is owned by the candidate, his contributor or supporter, the
COMELEC shall assess 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.

SEC. 8. Lawful Expenditures. – No candidate or treasurer of a political

party shall, directly or indirectly, make any expenditure except for the following
purposes:

(a) For traveling expenses of the candidates and campaign personnel

in the course of the campaign and for personal expenses incident
thereto;
 (b) For compensation of campaigners, clerks, stenographers,
messengers, and other persons actually employed in the campaign;

(c) For telegraph and telephone tolls, postages, freight and express
delivery charges;

(d) For stationery, printing and distribution of printed materials relative

to the candidacy;

(e) For employment of watchers at the polls;

(f) For rent, maintenance and furnishing of campaign headquarters,

office or place of meetings;

(g) For political meetings and rallies and the use of sound systems,
lights and decorations during said meetings and rallies;

(h) For newspaper, radio, television and other public advertisements;

(i) For employment of counsel;

(j) For copying and classifying lists of voters, investigating and

challenging the right to vote of persons registered in the lists; and

(k) For printing sample ballots in such color, size and maximum
number as may be authorized by the COMELEC.

The expenditures for items (i), (j), and (k) above, shall not be taken into
account in determining the amount of expenses which a candidate of political
party may have incurred under Section 7 hereof.

SEC. 9. Persons Authorized to Incur Election Expenditures. – No

person, except the candidate, the treasurer of political party, organization, or
coalition, or any person authorized by such candidate or treasurer, shall make
any expenditure in support of or in opposition to any candidate or political party,
organization, or coalition. Expenditures duly authorized by the candidate or
treasurer of the party shall be considered as expenditures of such candidate or
political party.

The authority to incur expenditures shall be in writing, copy of which shall

be furnished the COMELEC. It shall be signed by the candidate or the treasurer
of the party and shall state the expenditures so authorized and the full name and
exact address of the person so designated (see Annex “B” for sample form).

SEC. 10. Prohibited Donations by Candidates. – From February 13,

2007, in case of candidates for senators and party-list; and from March 30, 2007,
in case of candidates for Member, House of Representatives and local positions,
up to May 14, 2007, no candidate, his or her spouse, or any relative within the
second civil degree of consanguinity (up to grandparents, grandchildren, brothers
and sisters) or affinity (up to grandparents-in-law, or grandchildren-in-law,
brothers-in-law and sisters-in-law) or his campaign manager, agent or
representative shall 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.

Excluded from this prohibition are normal and customary religious dues or
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.

This prohibition shall apply to treasurers, agents or representatives of any

political party.

SEC. 11. Accounting for Agents of Candidates or Treasurers. – Every

person receiving contributions or incurring expenditure by authority of the
candidate or treasurer of the party shall, on demand by the candidate or
treasurer of the party and in any event within five (5) days after receiving such
contribution or incurring such expenditures, render to the candidate or treasurer
of the party concerned, a detailed account thereof with proper vouchers or official
receipts.

SEC. 12. Records of Contributions and Expenditures. – (a) It shall be

the duty of every candidate, treasurer of the political party and person acting
under authority of such candidate or treasurer to issue a receipt for every
contribution received, and to obtain and keep a receipt stating the particulars of
every expenditure made.

(b) Every candidate and treasurer of the party shall keep detailed, full and
accurate records of all contributions received and expenditures incurred by him
and by those acting under his authority, setting forth therein all information
required to be reported.

(c) Every candidate and treasurer of the party shall be responsible for the
preservation of the records of contributions and expenditures, together with all
pertinent documents, for at least three years after the holding of the election to
which they pertain and for their production for inspection by the COMELEC or its
duly authorized representative, or upon presentation of a subpoena duces tecum
duly issued by the COMELEC.

Failure of the candidate or treasurer to preserve such records or

documents shall be deemed prima facie evidence of violation of Sec. 106 of the
Omnibus Election Code, which constitutes an election offense.

SEC. 13. Reminders to Candidates to File Statement of Contributions

and Expenditures. – Not later than May 19, 2007, the Law Department of the
COMELEC, the regional election director of the National Capital Region, the
provincial election supervisors and election officer shall advise in writing by
personal delivery or registered mail all candidates who filed their certificates of
candidacy with them to comply with their obligation to file their statements of
contributions and expenditures in connection with the elections. Every election
officer shall also advise all candidates residing in his jurisdiction to comply with
said obligation.

SEC. 14. When and Where to File Statements. – Not later than June 13,
2007, every candidate shall file in duplicate with the COMELEC office where he
filed his certificate of candidacy a full, true and itemized statement of all
contributions and expenditures in connection with the elections. Within the same
period, every treasurer of the political party or party-list group that participated in
the elections shall file with the Law Department of the COMELEC its statement of
election contributions and expenditures. If the statement is sent by mail, it shall
be by registered mail, and the date on which it was registered with the post office
may be considered as the filing date thereof if confirmed on the same date by
telegram or radiogram addressed to the office or official with whom the statement
should be filed, which telegram or radiogram shall indicate the registry receipt
number of such registered mail.

The regional director of the National Capital Region, provincial election

supervisors and election officers concerned shall, not later than June 28, 2007,
send to the Election Records and Statistics Department, duplicate copies of all
statements filed with them, and a list of all candidates who failed to file their
statement of contributions and expenditures within the prescribed period.

SEC. 15. Form and Contents of Statements. – The statement required

in next preceding section shall be in writing, subscribed and sworn to by the
candidate or by the treasurer of the party. It shall set forth in detail the following:
 (a) The amount of contribution, the date of receipt, and the full name and
exact address of the person from whom the contribution was
received;

(b) The amount of every expenditure, the date thereof, the full name and
exact address of the person from whom payment was made and the
purpose of the expenditure;

(c) Any unpaid obligation, its nature and amount, and to whom said
obligation is owing; and

(d) Other particulars contained in the attached sample forms, Annexes

“C”, “C-1” and “C-2”.

If the candidate or treasurer of the party has received no contribution,

made no expenditure, or has no pending obligation, the statement shall reflect
such fact (See Annex “C-3”).

SEC. 16. Preservation and Inspection of Statements. – All statements

of contributions and expenditures shall be kept and preserved at the office where
they are filed and shall constitute part of public records thereat for three (3) years
after May 14, 2007. They shall not be removed therefrom except upon order of
the COMELEC or of a competent court and shall, during regular office hours, be
subject and open to inspection by the public. The officer-in-charge thereof, shall,
on written demand, furnish certified copies of any statement upon payment of the
fee of Two Pesos (P2.00) for every page.

He shall examine all statements received from candidates and political

parties to determine compliance with the provisions of this resolution.

SEC. 17. Effect of Failure to File Statement. – (a) 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 herein required.

The same prohibition shall apply if the political party which nominated the
winning candidates, or winning party-list group, fails to file the statement required
herein on or before June 13, 2007.

(b) Failure to file statements or reports in connection with the electoral

contributions and expenditures as required herein shall constitute an
administrative offense for which the offenders shall be liable to pay an
administrative fine ranging from One Thousand Pesos (P1,000) to Thirty
Thousand Pesos (P30,000), as may be determined by the COMELEC.
 The fine shall be paid within thirty (30) days from receipt of notice of such
failure; otherwise, it shall be enforceable by a writ of execution issued by the
COMELEC against the properties of the offender.

For the commission of a second or subsequent offense under this section,

the administrative fine shall be from Two Thousand Pesos (P2,000) to Sixty
Thousand Pesos (P60,000.00), in the discretion of the COMELEC. In addition,
the offender shall be subject to perpetual disqualification to hold public office.

SEC. 18. Report of Contractor and Business Firms. – Not later than
June 13, 2007, every person or firm to whom any electoral expenditure has been
made shall file with the Law Department of the COMELEC, in duplicate, a written
report setting forth the full names and exact addresses of the candidates,
treasurers of the political parties, and other persons incurring such expenditures,
the nature or purpose of each expenditure, the date and amount thereof, and
such other particulars contained in the attached sample form (Annex “D”).

The report shall be signed and sworn to by the supplier or contractor, or in

case of a business firm or association, by its president or general manager.

It shall be the duty of such person or firm to whom an electoral

expenditure is made to require every agent of a political party to present written
authority to incur electoral expenditures in behalf of such candidate or treasurer.

The same person or firm shall keep and preserve at its place of business,
subject to inspection by the COMELEC or its authorized representatives, copies
of such written authority, contracts, vouchers, invoices and other records and
documents relative to said expenditures for a period of three (3) years from May
14, 2007.

It is unlawful for any supplier, contractor or business firm to enter into

contracts involving electoral expenditures with the representatives of candidates
or political parties, organizations, or coalitions who do not have such written
authority.

SEC. 19. Statement of Expenses on Public Rally. – Within seven (7)

working days after holding any public rally, the candidate concerned shall submit
to the election officer a statement of expenses incurred in connection therewith.
(See Annexes “E’ and “F” hereof for sample forms).
 Failure to comply with this Section constitutes an election offense under
Section 68 in relation to Section 262 of the Omnibus Election Code.

SEC. 20. Effectivity. – This Resolution shall take effect on the seventh
day after its publication in two (2) daily newspapers of general circulation in the
Philippines.

SEC. 21. Dissemination. – The Education and Information Department

shall cause the publication of this Resolution in two (2) daily newspapers of
general circulation and furnish copies thereof to all field offices of the COMELEC
and registered political parties, organizations, or coalitions.

SO ORDERED.

(SGD) BENJAMIN S. ABALOS

Chairman

(SGD) RESURRECCION Z. BORRA (SGD) FLORENTINO A. TUASON, JR.

Commissioner Commissioner

(SGD) ROMEO A. BRAWNER (SGD) RENE V. SARMIENTO

Commissioner Commissioner

(SGD) NICODEMO T. FERRER

Commissioner