The Commission on Elections' Political Finance and Affairs Department (PFAD) has determined that Senator Francis Escudero committed no election code violation by receiving a P30-million campaign donation from Lawrence Lubiano, president of Centerways Construction and Development Inc. The PFAD recommended ending the probe, citing a lack of evidence for breaching Section 95 of the Omnibus Election Code.
In a nine-page resolution released on Wednesday, the PFAD stated there was no basis for the complaint against Escudero and Lubiano. The decision explained that stock or non-stock corporations are treated as separate and distinct legal entities from the natural persons composing them. Thus, Lubiano maintained his own 'separate legal personality' as an individual, independent of Centerways.
Escudero admitted receiving the donation from Lubiano during the 2022 senatorial elections. Lubiano serves as president of Centerways Construction and Development Inc., one of the top 15 government contractors cited by President Marcos for securing most contracts on flood control projects nationwide.
The PFAD noted that Lubiano 'merely exercised a right that is personal to him' in making the contribution. There was no evidence that the funds originated from Centerways or that 'corporate money crept into the campaign funds' of Escudero. 'There is no evidence establishing that the funds used in the contribution originated from Centerways,' the department stated. It further added that 'mere allegation, unaccompanied by any proof, is insufficient to disregard the separate legal personality' of either respondent.
This ruling provides clarity on campaign donations, emphasizing the distinction between personal and corporate funds under election law.