The Commission on Elections’ Political and Finance Affairs Department (PFAD) has cleared Senator Chiz Escudero and contractor Lawrence Lubiano of any violation related to the ₱30-million donation made to Escudero’s 2022 campaign.
In a nine-page resolution, PFAD closed its motu proprio investigation into a possible breach of Section 95(c) of the Omnibus Election Code, concluding that no evidence showed Lubiano used corporate funds from Centerways Construction and Development Inc. for the contribution. The law prohibits individuals or companies with government supply or construction contracts from making political donations.
PFAD emphasized that corporate personality must be respected, citing jurisprudence that “mere ownership or control of a corporation is not itself a ground to disregard corporate personality.”
It added that: “The fact of being an officer or stockholder is insufficient to justify disregarding the corporate form,” and that only clear proof of fraud or bad faith can pierce the corporate veil.
The resolution further stated: “Mere allegation, unaccompanied by any proof, is insufficient to disregard the separate legal personality of either respondent Lubiano or Centerways,” and that Lubiano “merely exercised a right that is personal to him.”
PFAD concurred that: “‘Mr. Lubiano is not Centerways, and Centerways is not Mr. Lubiano,’” affirming that Escudero’s acceptance of the donation carried “no legal impediment.”
With no violations established, the office recommended formally terminating the case for lack of evidence.