FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
5. 6. No. 232’9 
.. 
Introduced by Senator Francis N. Pangilinan 
EXPLANATORY NOTE 
The strength of the political party system in the Philippines has long been the 
subject of concern in both the academic field and in the political arena. There is a 
public perception that Philippine politics is based on personalities rather than 
ideology. This perception is reinforced by the shifting political allegiance and 
affirmation of turncoats, whether in national and local politics. 
The political parties in the Philippines appear to be visible only during 
elections. The positions of some of these parties on various issues do not appear to be 
clear cut and defined. There is little difference in the ideology of a number of 
political parties established in the country. Hence, it is not surprising that a member 
of one political party suddenly shifts to another political party at anytime of the year. 
Party loyalty in not as strong as it should be. The politician or candidate for 
public office bases his or her choice of party-affiliation not on party ideology but on 
other factors such as availability of funds and the party’s political networking. Of 
these factors, availability of funds for the party’s day to day operations and for its 
campaign election requirements appear to be the primordial consideration for 
choosing party affiliation. 
During elections, contributions from various sources are used by political 
parties to field and finance the election of candidates to public offices. More often 
than not, officials who are elected and financed through funds from private sources 
awe a great degree of loyalty to these private sources. This sense of loyalty is a 
potential source of malfeasance in office by the official concerned since public 
interest i s  subordinated to those of their donors’ / contributors’. 
This bill aims to minimize the possible influence exerted by private 
contributors upon elected officials (particularly, the President and the Vice President) 
whose campaign they have helped finance. This bill also aims to address the problem 
of political parties in the funding of candidates to the Offices of the President and 
Vice President, respectively. Under this measure, the political parties are entitled to 
reimbursement and payments from a public fund to be designated as the “Presidential 
Campaign Fund”. Thus, the evil of private funding can be eradicated. 
Moreover, this bill aims to establish the political party as a stronger electoral 
and lobbying force. The lack of funds has traditionally undermined the strength of the 
political party. Through subsidizing the political party which seeks to field candidates 
to the Offices of the President and Vice President, the political party gains strength as 
a continuing body. Any political party will be able to field candidates who, although 
qualified and highly competent, are unable to finance the high costs of the election 
campaign. 
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In view of the foregoing, approval of this bill is earnestlypquested. 
2 


FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
1 
Introduced by Senator Francis N. Pangilinan 
AN ACT 
PROVIDING 
FOR 
THE 
ESTABLISHMENT 
OF 
A 
PRESIDENTIAL CAMPAGIN FUND FOR PAYMENT OF THE 
APPROPRIATE 
AND 
ALLOWED 
EXPENDITURES 
OF 
POLITICAL PARTIES AND POLITICAL COMMITTEES IN 
PRESIDENTIAL AND VICE PRESIDENTIAL ELECTIONS AND 
ESTABLISHING PENALTIES FOR VIOLATIONS THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Republic 
of the Philippines in Congress assembled: 
Section 1. Short title 
This chapter may be cited as the “Presidential Election Campaign Fund Act” 
Section 2. Definitions 
For purposes of this chapter - 
(1) 
The term “authorized committee” 
means, with respect to the 
candidates of a political party for President and Vice President of the 
Republic pf the Philippines, any political committee which is authorized 
in writing by such candidates to incur expenses to further the election of 
such candidates. Such authorization shall be addressed to the chairman 
of such political committee, and a copy of such authorization shall be 
filed by filed by such candidates with the commission. Any withdrawal of 
any authorization shall also be in writing and hall be addressed and filed 
in the same manner as the authorization. 
(2) 
The term “candidate” means with respect to any presidential election, 
an individual who - 
(A) 
has been nominated for election to the office of President of the 
Republic of the Philippines or the office of Vice President of the 
Republic of the Philippines by a major party, or 
has qualified to have his name on the election ballot (or have the 
names of electors pledges to him on the election ballot) as the 
candidate of a political party for election to either such office. 
(B) 
For purposes of paragraph (6) and (7) of this section and purposes of section 
4(a) (2), the term “candidate” means, with respect to any preceding presidentiaL 
3 


election, an individual who received popular votes for the office of President in such 
election. The term “candidate” shall not include any individual who has ceased 
actively to seek election to the office of President of the Republic of the Philippines 
or to the office of Vice President of the Republic of the Philippines. 
The term “Commission” means the Commission on Elections” 
The term “eligible candidates” means the candidates of a political party 
for President and Vice President of the Republic of the Philippines who 
have met all applicable conditions for eligibility to receive payments 
under this law as set forth in section 3. 
The term “fund: 
means the Presidential Elections Campaign Fund 
established by Section 6(a). 
The term “major party” means, with respect to any presidential 
election, a political party whose candidate for the office of President in 
the preceding presidential elections received, as the candidate of such 
party, 25 percent or more of the total number of popular votes received 
by all candidates for such office. 
The term “minor party” means, with respect to any presidential 
election, a political party whose candidate for the office of President in 
the preceding presidential elections received, as the candidate of such 
party, 5 percent or more but less than 25 percent of the total number of 
popular votes received by all candidates for such office. 
The term “new party” means with respect to any presidential election, a 
political party which is neither a major party nor a minor party. 
The term “political committee” means any committee, association, or 
organization (whether or not incorporated) which accepts contributions 
or makes expenditures for the purpose of influencing, or attempting to 
influence , the nomination or election of one or more individuals to 
national or local elective public office. 
The term “presidential election” means the election of presidential and 
vice-presidential electors. 
The term “qualified campaign expense” means an expense. 
(A) 
incurred (i) by the candidate of a political party for the office of 
President to further his elections to such office or to further the 
elections of the candidate of such political party of the office of 
Vice President, or both (ii) by the candidate of a political party 
for the office Vice President to further his election to such office 
of to further the election of the candidates of a political party for 
the office of President, or both, or (iii) by an authorized 
committee of the candidates of a political party for the offices of 
President and Vice President to further the election of either or 
both of such candidates to such offices, 
(B) 
incurred within the expenditure report period (as defined in 
paragraph (12)), or incurred before the beginning of such period 
to the extent such expenses in for property, services, or facilities 
used during such period, and 
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(C) 
neither the incurring nor payment of which constitutes a violation 
of any law of the Republic of the Philippines 
An expense shall be considered as incurred by a candidate or an 
authorized committee if it is incurred by a person authorized by such candidate 
or such committee, as the case may be, to incur such expense on behalf of 
such candidate or such committee. If an authorized committee of the 
candidates of a political party for President and Vice President of the Republic 
of the Philippines also incurs expenses to further the election of one or more 
other individuals to national or local elective public office, expenses incurred 
by such committee which are not specifically to further the elections of such 
other individual or individuals shall be considered as incurred to further the 
election of such candidates for President and Vice President in such proportions 
as the Commission prescribes by rules or regulations. 
(12) 
The term “expenditure report period” with respect to any presidential 
election means - 
(A) 
in the case of a major party, the period beginning with the first 
day of September before the election, or, if, earlier, with the 
date on which such major party at its national convention 
nominated of its candidates for elections to the office of 
President of the Republic of the Philippines, and ending 30 days 
after the date of the presidential election; and 
(B) in the case of a party which i s  not a major party, the same period as 
the expenditure report period of the major party which has the 
shortest expenditure report period for such presidential election 
under subparagraph (A). 
Section 3. 
Conditions for eligibility for payments 
(a) 
In general 
In order to be eligible to receive any payments under section 6, the 
candidate of the political party in the presidential election shall, in writing - 
(1) 
agree to obtain and furnish to the Commission such evidence as it 
may request of the qualified campaign expenses of such candidates, 
agree to keep and furnish to the Commission such records, books, 
and other information as it may request, and 
agree to an audit and examination by the Commission under section 7 
and to pay any amounts required to be paid under such section. 
(2) 
(3) 
(b) 
Major parties 
In order to be eligible to receive any payments under section 6, the 
candidates of a major party in a presidential election shall certify to the 
Commission, under penalty of perjury, that - 
(1) 
such candidates and their authorized committees will not incur 
qualified campaign expenses in excess of the aggregate payments to 
which they will be entitled under section 4, and 
no contributions to defray qualified campaign expenses have been or 
will be accepted by such candidates or any of their authorized 
(2) 
5 


committees except to the extent necessary to make up any 
deficiency in payments received out of the fund on account of the 
fund on amount of the application of section 6(d), and no 
contributions 'to defray expenses which would be qualified campaign 
expenses but for subparagraph (C) of section 2(11) have been or will 
be accepted by such candidates or any of their authorized 
committees. 
(c) 
Minor and new parties 
In order to be eligible to receive any payment under section 6, the 
candidates of a minor or new party in a presidential election shall certify to 
the Commission under penalty or perjury, that - 
(1) 
such candidates and their authorized committees shall not incur 
qualified campaign expenses in excess of the aggregate payments to 
which the eligible candidates of a major party are entitled under 
section 4, and 
such candidates and their authorized committee will accept and 
expend or retain contributions to defray qualified campaign expenses 
only to the extent that the qualified campaign expenses incurred by 
such candidates and their authorized committees certified to under 
paragraph (1) exceed that aggregate payments received by such 
candidates out of the fund pursuant to section 6. 
Such certification shall be made within such time prior to the day 
of the presidential election as the Commission shall prescribe by riles 
or regulations. 
(2) 
(d) 
Withdrawal by candidate 
In any case in which an individual ceases to be candidate as a result of the 
operation of the last sentence of section 2(2), such individual - 
(1) 
shall no longer be eligible to receive any payments under section 6, 
except that such individual shall be eligible to receive payments 
under such section to defray qualified campaign expenses incurred 
while actively seeking election to the office of President pf the 
Republic of the Philippines or to the office of Vice President of the 
Republic of the Philippines; and 
shall pay to the Secretary, as soon as practicable after the date upon 
which such individual ceases to be a candidate, an amount equal to 
the amount of payments received by such individual under section 6 
which are not used to defray qualified campaign expenses. 
(2) 
Section 4. 
Entitlement of eligible candidates to payments 
(a) 
In general 
Subject to the provisions of this chapter - 
The eligible candidates of each major party in a presidential 
election shall be entitled to equal payments under section 6 in an 
amount which, in the aggregate, shall not exceed the expenditure 
(1) 
6 


limitations applicable to such candidates under existing laws, rules 
and regulations. 
(A) The eligible candidates of a minor party in a presidential 
election shall be entitled to payments under section 6 equal in the 
aggregate to an amount which bears the same ratio to the amount 
allowed under paragraph (1) for a major party as the number of 
popular votes received by the candidate for President of the minor 
party, as such candidate, in the preceding presidential election bears 
to the average number of popular votes received by her candidates 
for President of the major parties in the preceding presidential 
election. 
(2) 
(B) If the candidate of one or more political parties (not including 
a major party) for the office of the President was a candidate for 
such office in the preceding presidential election and received 5 
percent or more but less than 25 percent of the total number of 
popular votes received by all candidates for such office, such 
candidate and his running mate for the office of Vice President, upon 
compliance with the provisions of section 3(a) and (c), shall be 
treated as eligible candidates entitled to payments under section 6 in 
an amount computed as provided in subparagraph (A) by taking into 
account all popular votes received by such candidate for the office of 
President in the preceding presidential election. 
If eligible 
candidates of a minor party are entitled to payments under this 
subparagraph, such entitlements shall be reduced by the amount of 
the entitlement allowed under subparagraph (A). 
The eligible candidates of a minor party or a new party in a 
presidential election whose candidate for president in such election 
receives, as such candidate, 5 percent or more of the total number 
pf popular votes cast for the office of {resident in such election shall 
be entitled to payments under section 6 equal in the aggregate to an 
amount which bears the same ratio to the amount allowed under 
paragraph (1) for a major party as the number of popular votes 
received in such election bears to the average number of popular 
votes received in such election by, the candidates for President of the 
major parties. In the case of eligible candidates entitled to payments 
under paragraph (2), the amount allowable under this paragraph shall 
be limited to the amount, if any, by which the entitlement under 
preceding sentence exceeds the amount of entitlement under 
paragraph (2). 
(3) 
(b) 
Limitations 
The aggregate payments to which the eligible candidates of a political 
party shall be entitled under subsections (a)(2) and (3) with respect to a 
presidential election shall not exceed an amount equal to the lower of - 
(1) 
the amount of qualified campaign expenses incurred by such eligible 
candidates and their authorized committees, reduced by the amount 
of allowable contributions to defray qualified campaign expenses 
received and expended or retained by such eligible candidates and 
such committees, or 
7 


(2) 
the aggregate payments to which the eligible candidates of a major 
party are entitled under subsection (a)(l), reduced by the amount of 
contributions described in paragraph (1) of this subsection. 
(c) 
Restrictions 
The eligible candidates of a political party shall be entitled to payments 
under subsection (a) only - 
(1) 
to defray qualified campaign expenses incurred by such 
eligible 
candidates or their authorized committees, or 
to repay loans the proceeds of which were used to defray such 
qualified campaign expenses, or otherwise to restore funds (other 
than allowed contributions to defray qualified campaign expenses 
received and expanded by such candidates or such committees) used 
to defray such qualified campaign expenses. 
(2) 
(d) 
Expenditures from personal funds 
In order to be eligible to receive any payment under section 5, the 
candidate for a major, minor, or new party in an election for the office of 
President shall certify to the Commission, under penalty of perjury, that 
such candidate will not knowingly make expenditures from his personal 
funds, or the personal funds of his immediate family in connection with his 
campaign for election to the office of President in excess of, in the 
aggregate, Php250,OOO. 
For purposes of this subsection, expenditures from personal funds made 
by a candidate pf a major, minor, or new party for the office of Vice 
President shall be considered to be expenditures by the candidate of such 
party for the office of President. 
(e) 
Definition of immediate family 
For purposes of subsection (d), the term “immediate family” means a 
candidate’s spouse , and any child, parent, grandparent, brother, half- 
brother, sister, or half-sister of the candidate, and the spouses of such 
persons. 
(f) 
Amount of Allowable Contributions 
Within sixty (60) days from the effectivity of this Act, the Commission shall 
promulgate rules and regulations prescribing the limit of allowable 
contributions to candidates for presidential and vice-presidential office. 
Section 5. 
Certification Commission 
(a) Initial certifications 
Not later than 10 days after the candidates of a political party for 
President and Vice President of the Republic of the’philippines have met all 
applicable conditions for eligibility to receive payments under this law as set 
forth in this section 3, the Commission shall certify to the Secretary of the 
Department of Finance for payment such eligible candidates under section 6 
8 


payment in full of amounts to which such candidates are entitled under section 
4. 
(b) Finality of certifications and determinations 
Initial certifications by the Commission under subsection (a), and all 
determinations made by it under this chapter, shall be final and conclusive, 
except to the extent that they are subject to examination and audit by the 
Commission under section 7 and judicial review under section 11. 
Section 6. 
Payments to eligible candidates 
(a) 
Establishment of campaign fund 
There is herby established on the books of the Republic of the 
Philippines a special fund to be known as the “Presidential Election 
Campaign Fund”. There i s  appropriated to the fund of the Department of 
Finance not otherwise appropriated an amount equal to the amounts so 
designated during each fiscal year, which shall remain available to the fund 
without fiscal year Limitation. 
(b) 
Payments from the fund 
Upon receipt of a certification from the Commission under section 5 for 
payment to the eligible candidates of a political party, the Secretary of the 
Department of Finance shall pay to such candidates shall be under the 
control of such candidates. 
(c) 
Insufficient amounts in fund 
If at the time of a certification by the Commission under section 5 for 
payment to the eligible candidates of a political party, the Secretary 
determines that the moneys in the fund are not, or maybe not, sufficient 
to satisfy the full entitlements of the eligible candidates of all political 
parties, he shall withhold from such payment such amount as he determines 
to be necessary to assure that the eligible candidates of each political party 
will receive their pro rata share of their full entitlement. Amount withheld 
by reason of the preceding sentence shall be paid when the Secretary 
determines that there are sufficient moneys in the fund to pay such 
amounts, or portions thereof, to all eligible candidates form whom amounts 
have been withheld, but, if there are not sufficient moneys in the fund to . 
satisfy the full entitlement of the eligible candidates of all political parties, 
the amounts 
withheld shall be paid in such manner that the eligible 
candidates of each political party receive their pro rata share of their full 
entitlement. In any case in which the Secretary determines that there are 
insufficient moneys in the fund to make payments under subsection (b), 
section 8(b)(3), moneys shall not be made available from any other source 
for the purpose of making such payments. 
Section 7. Examinations and audits: repayments 
(a) 
Examinations and audits 
After each presidential elections, the Commission shall conduct a thorough 
examination and audit of the qualified campaign expenses of the candidates of each 
political party for President and Vice President. 
9 


Repayments 
(1) 
If the Commission determines that any portion of the payments made to 
the eligible candidates of a political party under section 6 was in excess of the 
aggregate payments to which candidates were entitled under section 4, it shall 
so notify such candidates, and such candidates shall pay to the Secretary of the 
Department of Finance an amount equal to such portion. 
(2) 
If the Commission determines that the eligible candidates of a political 
party and their authorized committees incurred qualified campaign expenses in 
excess of the aggregate payments to which the eligible candidates of a major 
party were entitled under section 4, it shall notify such candidates of the 
amount of such excess and such candidates shall pay to the Secretary of the 
Department of Finance an amount equal to such amount. 
(3) 
If the Commission determines that the eligible candidates of a major 
party or an authorized committees of such candidates accepted contributions 
(other than contributions to make up deficiencies in payments out of the fund 
on account of the application of section 6(c)) to defray qualified campaign 
expenses (other than qualified campaign expenses with respect to which 
payment i s  required under paragraph (2)), it shall notify such candidates of the 
amount of contributions so accepted, and such candidates shall pay to the 
Secretary of the Department of Finance an amount equal to such amount. 
(4) 
If the Commission determines that any amount of any payments made to 
the eligible candidates of a political party under section 6 was used for any 
purpose other than - 
(A) 
to defray the qualified campaign expenses with respect to which such 
payments was made, or 
to repay loans the proceeds of which were used, or otherwise to restore 
funds (other than contributions to defray qualified campaign expenses 
which were received and expended) which were used to defray such 
qualified campaign expenses, it shall notify such candidates of the 
amount used, and such candidates will pay to the Secretary of the 
Department of Finance an amount equal to such amount. 
(5) 
No payment shall be required from the eligible candidates of a political 
party under this subsection to the extent that such payments, when added to 
other payments required from such candidates under this subsection, exceed 
the amount of payments received by such candidates under section 6. 
Notification 
(B) 
No notification shall be made by the Commission under subsection (b) 
with respect to a presidential election more than 3 years after the day of such 
election. 
Deposit of repayments 
All payments received by the Secretary of the Department of Finance under 
subsection (b) shall be deposited by him in the general fund of the Department 
of Finance. 
Section 8. 
Payments for presidential nominating conventions 
10 


(a) 
Establishment of accounts 
The Secretary shall maintain in the fund, in addition to any account which he 
maintains under section 6(a), a separate account for the national committee of 
each major party and minor party. The Secretary shall deposit in each such 
account an amount equal to the amount, which each such committee may 
receive under subsection (b). Such deposits shall be made before any transfer 
in made to any account for any eligible candidate under section 6(a). 
Entitlement to payments from the fund 
(1) 
Major parties 
(b) 
Subject to the provision of this section, the national committee of a 
major party shall be entitled to payments under paragraph (3), with respect to 
any presidential nominating convention, in amounts which, in the aggregate, 
shall not exceed Php4,000,000. 
(2) 
Minor parties 
Subject to the provision of this section, the national committee of a 
minor party shall be entitled to payments under paragraph (3), with respect to 
any presidential nominating convention, in amounts which, in the aggregate, 
shall not exceed an amount which bears the same ratio to the amount the 
national committee of a major party is entitled to received under paragraph (1) 
as the number of popuiar votes received by the candidate for President of the 
minor party, as such candidate, in the preceding presidential election bears to 
the average number of popular votes recoiled by the candidates for President 
of the Republic of the 
Philippines of the major parties in the preceding 
presidential election. 
(3) 
Payments 
Upon receipt of certification from the Commission under subsection (g), 
the Secretary shall make payments from the appropriate account maintained 
under subsection (a) to the National committee of a major party or minor 
party, which elects to receive its entitlements under this subsection. Such 
payments shall be available for use by such committee in accordance with the 
provisions of subsection (c) 
(4) 
Limitation 
Payments to the national committee of a major party or minor party 
under this subsection, from the account designated for such committee shall be 
limited to the amount in such account at the time of payment. 
(5) 
Adjustments of entitlements 
The entitlements established by this subsection shall be adjusted in 
accordance with increases in price index as follows: 
(A) 
At the beginning of each calendar year, as there become available 
necessary data from the Department of Labor, the Secretary of Labor shall 
certify to the Commission the percent difference between the price index of 
the 12 months preceding the beginning of such calendar year and the price 
index for the price period. The limitations established herein shall be increased 
11 


by such percent difference. Each amount so increased shall be the amount n 
effect for such calendar year. 
(B) 
For purposes of paragraph (1) - (i) the term “price index” means 
the average over a calendar year of the Consumer Price Index; (ii) 
the term 
“base period” means the calendar year 2001. 
(c) 
Use of funds 
No part of any payment made under subsection (b) shall be used to defray such 
expenses of any candidate pr delegate which is participating in any presidential 
nominating convention. Shall payments shall be used only - 
(1) 
to defray expenses incurred with respect to a presidential 
nominating 
convention (including the payment of deposits) by iron 
behalf of the national committee receiving such payments; or 
(2) 
to repay loans the proceed of which were used to defray such 
expenses, or otherwise to restore funds (other than contributions to 
defray such expenses received by such committee) used to defray such 
expenses. 
(d) 
Limitation of expenditures 
(1) 
Major parties 
Except as provided by paragraph (3), the national committee of a major 
party may not make expenditures with respect to a presidential nominating 
convention which, in the aggregate, exceed the amount of payments to which 
such committee in entitled under subsection (b)(l). 
(2) 
Minor parties 
Except as provided by paragraph (3), the national committee of a major 
party may not make expenditures with respect to a presidential nominating 
convention which, in the aggregate, exceed the amount of entitlement of a 
national committee of a major party under subsection (b)(l). 
(3) 
Exception 
The Commission may authorize the national committee of a major party 
or minor party to make expenditures, which, on the aggregate, exceed the 
limitation established by paragraph (1) or paragraph (2) o f  this subsection. Such 
authorization shall be based upon a determination by the Commission that, due 
to extra ordinary and unforeseen circumstances, such expenditures are 
necessary to assure the effective operation of the presidential nominating 
convention by such committee. 
(4) 
Provision of legal or accounting services 
For purposes of this section, the payment, by any person other than the 
national committees of a political party (unless the person paying for such 
services is a person other than the regular employer 
pr the individual 
rendering 
such services) of compensation 
to any individual for legal or 
accounting services to or on behalf of the national committee of a political 
party shall not be treated as an expenditure made by or on behalf of such 
12 


committee with respect to i t s  limitation on presidential nomination convention 
expenses 
Availability of payments 
The national committee of a major party or minor party may receive 
payments under subsection (b)(3) beginning on July 1 of the calendar year 
immediately preceding the calendar year in which a presidential nominating 
convention of the political party involved is held. 
Transfer to the fund 
If, after the close of a presidential nominating convention and after the 
national committee of a political party involved has been [aid the amount 
which it i s  entitled to receive under this section, there are moneys remaining 
in the account off such national committee, the Secretary shall transfer the 
moneys so remaining to the fund. 
Certification by Commission 
Any major party or minor party may file a statement with the commission 
in such form and manner and that at such times as it .may require, designating 
the national committee of such party. Such statements shall include the 
information the following information: 
the name and address of the committee; 
the names, addresses, and relationships of affiliated or corrected 
organizations; 
the area, scope, or jurisdiction of the committee; 
the name, addresses, and position of custodian of books and 
accounts; 
the name, address and positions of other principal officers, 
including officers and members of the finance committee, if any; 
the name, address, the office sought, and part affiliation of (a) 
each candidate whom the committee is supporting, and (b) any 
other individual, if any, whom the committee i s  supporting for 
nomination for election, or election, to' any public officer 
whatever; or if, the committee is supportins the entire ticket of 
any party, the name of the party; 
a statement whether the committee is a continuing one; 
the disposition of residual funds which will be made in the event 
of dissolution; 
a listing of all banks , safety deposit boxes or other repositories 
used; 
a statement of the reports required to be filed by the committee 
with national and local officers, and if so, the names, addresses, 
and positions if such persons; and 
Such other information as shall be required by the Commission. 
Upon receipt of a statement filed under the preceding sentences, the 
Commission promptly shall verify such statement according to such procedures 
and criteria as it may establish and shall certify to the Secretary for payment in 
full to any such committee of amounts to which such committee may be 
entitled under subsection (b). Such certification shall be subject to an 
examination and audit which the Commission shall conduct no later than 
December 31, of the calendar year in which the presidential nominating 
convention involved i s  held. 
13 


(h) 
Repayments 
The Commission shall have the same authority to require repayments from 
the national committee of a major party or a minor party as it has with respect 
to repayments from any eligible candidate under section 7(b). The provision of 
section 7(c) and section (d) shall apply with respect to any repayment required 
by the Commission under this subsection. 
Section 9. 
(a) 
Reports 
Report to Congress; regulations 
The Commission shall, as soon as practicable after each presidential election, 
submit a full report to the Senate and House of Representatives setting forth - 
the qualified campaign expenses (shown is such detail as the 
Commission determines necessary) incurred by the candidates of 
each political party and their authorized committees; 
the amounts certified by it under section 5 fro payment to the 
eligible candidates of each political party; 
the amount of payments, if any, required from such candidates under 
section 7, and the reason for each payment required; and 
the expenses incurred by the national committee of a major party or 
minor party with respect to a presidential nominating convention; 
the amount certified by it under section 8(g) for payment to each 
such committee; and 
the amount of payments, if any, required from such committees 
under section 8(h), and the reason for each such payment. 
Each report submitted pursuant to this section shall be printed as a Senate 
document. 
(b) 
Regulations, etc. 
The Commission is authorized to prescribe such rules and regulations in 
accordance with the provisions of subsection (c), to conduct such examinations 
and audits (in addition to the examinations and audits required by section 7(a), 
to conduct such investigations, and to require the keeping and submission of 
such books, records, and information, as it deems necessary to carry out the 
functions and duties imposed on it by this chapter. 
(c) 
Review of regulations 
(1) 
The Commission, before prescribing any rule and regulations under 
subsection (b), shall transmit a statement with respect to such rule or 
regulation to the Senate and to the House of Representatives, in accordance 
with the provisions of this subsection. Such statement shall set forth the 
proposed rule or regulation and shall contain a detailed explanation and 
justification of such rule of regulation. 
(2) 
If either such House does not, through appropriate action, disapprove 
the proposed rule or regulation set forth in such statement no later than 30 
legislative days after receipt of such statement, then the Commission may 
14 


prescribe such rule or regulation. Whenever a committee of the House of 
Representatives reports any resolution relating to any such rule or regulation, 
it is at any time thereafter in order (even though a previous motion to the 
same effect has been disagreed to) to move to proceed to the consideration of 
the resolution. The motion is highly privileged and is not debatable. An 
amendment to the motion is not in order, and it is not in order to move to 
reconsider to vote by which the motion is agreed to or disagreed to. The 
Commission may not prescribe and rule or resulation which is disapproved by 
either such House under this paragraph. 
(3) 
For the purposes of this subsection, the term “legislative days” does not 
include any calendar day on which both House of the Congress are not in 
session. 
(4) 
For purposes of this subsection, the term “rule or regulation” means a 
provision or series of interrelated provisions stating a single separable ruie of 
law. 
Section I O .  Participation by Commission in judicial proceedings 
(a) 
Appearance by counsel 
The Commission i s  authorized to appear in and defend against any action filed 
under section 11, either by attorneys employed in i t s  office or by counsel whom is 
may appoint. 
(b) 
Recovery of certain payments 
The Commission is authorized through attorneys and counsel descried in 
subsection (a) to petition the courts of the Republic of the Philippines to seek 
recovery of any amounts determined to be payable to the Secretary of the 
Department of Finance as a result of examination and audit made pursuant to 
section 7. 
(c) 
Declaratory and injunctive relief 
The Commission is authorized through attorneys and counsel descried in 
subsection (a) to petition the courts of the Republic of the Philippines for 
declaratory or injunctive reUef concerning any civil matter covered by the 
provision of this subtitle. 
Upon application of the Commission as action brought pursuant to this 
subsection shall be heard and determined by the appropriate court in 
accordance with applicable laws, rules and regulations. 
I 
(d) 
Appeal 
The Commission is authorized on behalf of the Republic of the Philippines to 
appeal from, and to petition the Supreme Court for certiorari to review, judgments or 
decrees entered with respect to actions in which it appears pursuant to the authority 
provided in this section. 
Section 11. Judicial Review 
(a) 
Review of certification, determination, or other action by the Commission. Any 
certification, determination, or other action by the Commission made or taken 
15 


pursuant to the provisions of this chapter shall be subject to review by the Court of 
Appeals upon petition filed in such Court by any interested person. Any petition filed 
pursuant to this section shall be files within thirty days after the certification, 
determination, or other action by the Commission for which review is sought. 
(b) 
Suits to implement chapter 
(1) 
The Commission, the national committee of any political party, and 
individuals eligible to vote for President are authorized to institute such 
actions, including actions for declaratory judgment or injunctive relief, as may 
be appropriate to implement or construe any provisions for this chapter. 
(2) 
The appropriate courts of the Republic of the Philippines shall have 
jurisdiction of proceedings instituted pursuant to this subsection and shall 
exercise the same without regard to whether a person asserting rights under 
provisions of this subsection shall have exhausted and administrative or other 
remedies that may be provided at law. 
Section 12. Criminal penalties 
(a) 
Excess expenses 
(1) 
It shall be unlawful for and eligible candidate of a political party for 
President and Vice President in a presidential election or any of his authorized 
committees knowingly and willfully to incur qualified campaign expenses in 
excess of the aggregate payments to which the eligible candidates of a major 
party are entitled under section 4 with respect to such election. It shall be 
unlawful for the national committee of a major party or minor party knowingly 
and willfully to incur expenses with respect o a presidential nominating 
convention in excess of the expenditure limitation applicable with respect to 
such committee under section 8(d), unless the incurring of such expenses is 
authorized by the Commission under section.B(d)(3). 
(2) 
Any person who violates paragraph (1) shall be fined not more than 
Php500,000, or imprisoned not more than one year or both. In case of a 
violation by an authorized committee, any officer or member of such 
committee who knowingly and willfully consent to such violations shall be fined 
not more than Php500,000, or imprisoned not more than one year, or both. 
(b) 
Contributions 
(1) 
It shall be unlawful for an eligible candidate of a major party in a 
presidential election or any of his authorized committees knowingly and 
willfully to accept any contributions to defray qualified campaign expenses, 
except to the extent necessary to make up any deficiency in payments received 
out of the fund on account of the application of section 6(c), or to defray 
expenses which would be qualified campaign expenses but for subparagraph 
(C) of section Z(11). 
(2) 
It shall be unlawful for an elisible candidate of a political party (other 
than a major party) in a presidential election of any of his authorized 
committees knowingly and willfully to accept and expend or retain 
contributions to defray qualified campaign expenses in an amount which 
exceeds the qualified campaign expenses incurred with respect to such 
election by such eligible candidate ... (PARAGRAPH NOT COMPLETE) 
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(3) 
Any person who violates paragraph (1) or (2) shall be fined not more 
than Php500,000, or imprisoned not more than one year, or both. In the case of 
a violation by an authorized committee, any officer or member of such 
committee who knowingly and willfully consent to such shall be fined not more 
than Php500,000, or imprisoned not more than one year, or both. 
(c) 
Unlawful use of payments 
(1) 
It shall be unlawful for any person who receives any payment under 
section 6, or to whom any portion of any payment received under such section 
i s  transferred, knowingly and willfully to use, or authorize the use of, such 
payment or such portion for any portion for any purpose other than - 
(A) 
to defray the qualified campaign expenses with respect to such 
payment was made , or 
to repay loans the proceeds of which were used, or otherwise to 
restore funds (other than contributions to defray qualifies 
campaign expenses which were received and expended) which 
were used , to defray such qualified campaign expenses. 
(2) 
It shall be unlawful for the national committee of a major party or 
minor party which receives any payment under section 8 (b)(3) to use, or 
authorized the use of, such payment for any purpose other than a purpose 
authorized by section 8(c). 
(3) 
Any person who violates paragraph (1) shall be fined not more than 
Php1,000,000, or imprisoned not more than five years, or both. 
(B) 
(d) 
False statements, etc. 
(1) 
It shall be unlawful for any person knowingly and willfully - 
(A) 
to furnish any false, fictitious, or fraudulent evidence, books, or 
information to the Commission under this subtitle, or to include in 
any 
evidence, 
books, 
or 
information 
so 
furnished 
any 
misinterpretation of a material fact, or to falsify or conceal any 
evidence, books or information relevant to certification by the 
Commission or an examination and audit by the Commission under 
this act; or 
(8) 
to fail to furnish to the Commission any records, books or 
information requested by r for purposes of this act. 
(2) 
Php1,000,000, or imprisoned not more than five years, or both. 
Any person who violates paragraph (1) shall be fined not more than 
(e) 
Kickbacks and illegal payments 
(1) 
It shall be unlawful for any person knowingly and willfully to give or 
accept any kickback or any illegal payment in connection with any qualified 
campaign expenses or eligible candidates or their authorized committees. It 
shall be unlawful for the national committee of a major party or minor party 
knowingly and willfully to give or accept any kickback or any illegal payment in 
connection with any expense incurred by such committee with respect to a 
presidential nominating convention. 
17 


(2) Any person who violates paragraph (1) shall be fined not more than 
Php1,000,000, or imprisoned not more than five years, or both. 
(3) 
In addition to the penalty provided by paragraph (2), any person who 
accepts any kickback or any illegal payment in connection with any qualified 
campaign expense of eligible candidates or their authorized committees, or in 
connection with any expense incurred by the national committee of a major 
or minor party with respect to a presidential nominating convention shall pay 
to the Secretary of Finance, for deposit in the general fund of the Department 
of Finance, an amount equal to 125 percent of the kickback or payment 
received. 
(f) 
Unauthorized expenditures and contributions 
(1) 
Except as provided in paragraph (2), it shall be unlawful for any political 
committee which is not authorized committee with respect to the eligible 
candidates for a political party for President and Vive President in a 
presidential election knowingly and willfully to incur expenditures to further 
the election of such candidates, which would constitute qualified campaign 
expenses in incurred by an authorized committee of such candidates, in an 
aggregate amount exceeding Phpl,OOO,OOO. 
(2) 
This subsection shaU not apply to (a) expenditures by a broadcaster 
regulated by the National Telecommunications Commission, or by a periodical 
publication, in reporting the news or in taking editorial positions, or (B) 
expenditures by any organization in communicating to i t s  members the views of 
that organization. 
(3) 
Any political committee which violates paragraph (1) shall be fined not 
more than Php500,000, and any officer or member of such committee who 
knowingly and willfully consent to such violation and any other individual who 
knowingly and willfully violates paragraph (1) shall be fined not more than 
Php500,000, or imprisoned not more than one year, or both. 
(g) 
Unauthorized disclosure of information 
(1) 
It shall be unlawful for nay individual to disclose any information 
obtained under the provisions of this chapter except as may be required by 
law. 
(2) 
Php500,000, or imprisoned not more than one year, or both. 
Any person who violates paragraph (1) shall be fined not more than 
Section 13. Separability Clause 
In any section or provision of this Act shall be declared unconstitutional or 
invalid, the other section or provision not affected thereby shall remain in full force 
and effect. 
Section 14. Repealing Clause 
All laws, decrees, orders, rules and regulations and other issuance inconsistent 
with the provisions of this Act are deemed modified, revoked or repealed accordingly. 
Section 15. Effectivity 
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This act shall take in effect fifteen (15) days after i t s  publication in two (2) 
newspapers of general circulation. 
Approved, 
19