EDITORIAL - Regulating campaign funds

With lawmakers resisting efforts to regulate campaign finance, it’s good to know that the Securities and Exchange Commission has partnered with the Commission on Elections to monitor campaign contributions. The partnership specifically targets corporations, which are barred from donating funds to individual candidates and political parties. Whether the SEC and Comelec can carry out the task effectively remains to be seen.

The two commissions have agreed that after the general elections in May 2016, the Comelec will furnish the SEC information on the expenditures of every candidate. The SEC will check whether there are corporate donors listed in the statements of contributions and expenditures. Win or lose, each candidate is required to submit the statement or SOCE.

With the number of candidates usually running into hundreds of thousands, verifying information provided in the SOCE has always been a challenge for the Comelec. There is rarely a paper trail for campaign contributions, with many big-ticket donors preferring to remain anonymous for various reasons. Dirty money is also laundered to finance campaigns, with jueteng among the top illegal sources of funds.

The partnership with the SEC has a limited reach and is a small step, but it still boosts the Comelec’s capability. The two commissions may want to include the Bureau of Internal Revenue and Anti-Money Laundering Council in the effort to compel candidates to provide accurate information in the SOCEs.

Based on the results of the new partnership, the SEC and Comelec should also draw up legislation to improve regulation of campaign finance. The draft can be presented by the Comelec, whose members are not co-terminus with the Aquino administration, to the next Congress. It may have as much chance of approval as the proposed laws banning political dynasties, but some of the proposed reforms may make it through the legislative mill. Campaign financing is one of the biggest roots of corruption, and any effort to promote good governance must start with effective regulation of campaign funds.