Senators JV Ejercito & Grace Poe: Foundations in aid of election

THEY WERE supposedly set up to uplift the lives of those in need. Yet in their first few months of operation, they served a rather different, yet specific, purpose: to promote the candidacy of two legislative aspirants who eventually won and are now occupying seats in the Senate.

Senator Joseph Victor ‘JV’ G. Ejercito of the United Nationalist Alliance (UNA) and Senator Mary Grace Poe-Llamanzares of Team PNoy were each supported during the campaign by organizations formed in their name: JV Para sa Bayan Movement Inc. and the Friends of Grace Poe Foundation Inc., respectively.

These two non-stock associations were registered in the Securities and Exchange Commission (SEC) close to and right at the start of the campaign period — JV Para sa Bayan on Dec. 14, 2012 and Friends of Grace Poe on Feb. 15, 2013. The names of these foundations immediately emerged as major donors of the two candidates, buying ads in bulk in the thick of the campaign.

Read the full story: Foundations for elections

The creation of foundations during an election cycle or even prior to the elections, of course, is no longer surprising to Commissioner Christian Robert S. Lim of the poll body’s Campaign Finance Unit (CFU) and Commissioner Kim S. Jacinto Henares of the Bureau of Internal Revenue (BIR). Henares even notes that historically, many foundations have been set up in the name of politicians such as Friends of Mar for Interior and Local Government Secretary Manuel ‘Mar’ A. Roxas II and the Yellow Ribbon Movement for President Benigno Simeon ‘Noynoy’ C. Aquino III.

Lim says, however, that foundations, just like any other campaign donor, are bound by campaign-finance rules. For instance, he says, a foundation is not allowed to buy airtime for a particular candidate without the candidate’s consent or acceptance. Foundations are also not allowed to receive money from prohibited contributors such as public or private financial institutions, entities that hold government contracts, civil servants, and foreigners and foreign corporations, among others.

Under revenue regulations, a non-stock association or a foundation may enjoy certain tax exemptions if it applies for and is issued a tax exemption certificate by the tax authority. She ticks off two basic requirements a foundation must meet for this: one, it must be registered with the Securities and Exchange Commission (SEC), and two, it must get an accreditation from the BIR to determine its exemption.

Take the case of Friends of Grace Poe Foundation. Its incorporation papers say that it was formed to promote the advocacies of Mary Grace Poe; to help those who are much in need; to undertake medical missions and other projects; and to exercise all powers provided under Section 36 of the Corporation Code. Yet it has emerged as paying for the majority of Poe’s campaign advertisements. The latter was borne out by various advertising contracts and broadcast orders gathered by PCIJ from the Education and Information Department (EID) of the Comelec.

Election laws also require media entities to submit a series of advertising documents to the Comelec at certain deadlines during and after the campaign period. One such set of documents shows that advertiser Friends of Grace Poe, broadcast network ABS-CBN, and agency Mejah Inc. entered into an advertising contract worth P5.11 million on April 22, 2013. This contract is composed of 20 15-second TV ads that were supposed to be aired from April 27, 2013 to May 6, 2013. The advertising contract bears the signature of Grace Poe accepting the donation made by Friends of Grace Poe.

Poe-Llamanzares reported receiving 60 separate donations, 11 of which were made by six companies or non-individuals, in the Statement of Election Contributions and Expenditures (SOCE) she filed with Comelec nearly a month ago. Friends of Grace Poe, however, was not among the donors she listed in her SOCE.

Firms in the red, gov’t contractors top donors of Senate bets, parties

IN ELECTIONS PAST, the top contributors to the campaign war chests of most candidates and their parties were big businessmen, captains of industry, and prominent tycoons who clearly had enough money to throw around.

But a curious trend has emerged from the May 2013 midterm elections: The big donors are now corporations with small to moderate capital, with some of them apparently operating at a loss or surviving on a few thousand pesos in profit.

The latest investigative offering of the Philippine Center for Investigative Journalism looks into this curious development of how small businesses with little capitalization and no clear revenue stream are apparently able to afford huge multimillion peso donations to their favorite candidate. It is a development that has piqued the interest of both the Commission on Elections, which is supposed to look into the accuracy of the donor reports submitted by the candidates, as well as the Bureau of Internal Revenue, which now wants to look into how companies that claim not to make enough money have more than enough to bankroll someone’s candidacy.

The first of this two-part report was written by PCIJ Executive Director Malou Mangahas and PCIJ Research Director Karol Ilagan. Read Part 1 here.

Part 2 is now available here.

DATA A DAY: Ano ang K mo?

EVERYBODY HAS HEARD of the K+12 or the K-to-12 law that President Benigno S. Aquino III signed in May this year. But while everyone seems to like talking about the law and the controversy it has generated, it would be good to know just how much we really understand of the K+12 program.

Here’s today’s Data a Day:

On May15, 2013, President Aquino signed into law RA 10533 or the Enhanced Basic Education Act of 2013. This law mandates what?

1. One year preparatory education, 6 years of elementary, 6 years secondary

2. One year preparatory, 7 years elementary, 5 years secondary

3. Two years preparatory, 6 years elementary, 5 years secondary

Just to simplify, is K+12 equal to 1+6+6, 1+7+5, or 2+6+5?

Find out the answer by checking the MoneyPolitics website of the PCIJ here.

 

 

 

Journos, netizens of Luzon: This PCIJ seminar is for you!

CALLING all journalists, bloggers, and netizens in Luzon:

Are you into investigative reporting?

Do you care enough about human rights, political clans, governance, and how we must keep safe and stay alive, so we may all write another day?

This third is a series of PCIJ seminars is for you.

You may apply to attend it until Wednesday next week, July 10, 2013.

Check out this notice from the PCIJ Training Desk:

Application deadline: July 10, 2013
Seminar schedule: Aug. 22-25, 2013

Who may apply?

Mid-career and senior Filipino journalists, netizens, and bloggers. Researchers, anchors, producers, editors, news managers, freelance reporters, contributors, and stringers of print, TV, radio, and online media may apply. Netizens and bloggers writing about public policy issues are eligible.

Seminar Topics

- Media Killings, Political Violence, and Impunity in the Philippines
- Political Clans: Past and Future Links
- The Government’s Purse: Tracking the State’s Resources
- Ethics and Safety: Field and Newsroom Judgment Calls
- The Fundamentals of Investigative Reporting
- Tracking the Investigative Trails
- The Paper Trail: Understanding, Connecting, and Organizing Documents and Databases
- The People Trail: The Art of the Interview
- Putting the Story Together (for print, broadcast, and multimedia)

Funding
The PCIJ will cover:
- Round-trip transportation from the participant’s place of work or residence, to the seminar venue.
- Board and lodging during the seminar.

The PCIJ will also provide a modest fellowship grant for story proposals that will be approved during or immediately after the seminar.

Application Requirements

1. Completed application form with two references. (download here).
2. One or two samples of work discussing public policy, development, human rights, or governance issues.

For print and online: link to the stories or attach copies of stories in Word or PDF.

For TV and radio: script, story concept/treatment, talking points, or research materials used in the broadcast story. A recording of the broadcast may also be submitted.

Work samples may be submitted via:
a. Mail – enclose the CD or USB flash disk containing the recording of broadcast
b. E-mail – attach the material or send the link.

Selection Process
Applicants will be selected based on the following criteria:
- Track record or experience in covering public policy issues.
- Demonstrated interest in doing in-depth reports on governance, development, and human rights issues.
- Potential for playing a key leadership role within his/her organization or media community.

Successful applicants will be notified within 10 working days after deadline.

The seminar graduates will be accorded priority slots in the subsequent Advanced Investigative Reporting Seminars that PCIJ will conduct in 2014.

Sending your application

By email:
Email address: training@pcij.org
Please state ‘Application to Basic IR Seminar’ on the subject line
Note: We will acknowledge receipt of all submissions. If you do not receive any reply within three working days, please resend your application and move a follow-up email or call (02) 410-4768.

By fax:
Telefax: (02) 410-4768
Please write ‘ATTN: PCIJ Training Desk’ on the fax cover sheet
Note: After sending a fax message, please call (02) 410-4768 to confirm if all the documents had been transmitted successfully.

By mail:
The Training Desk
Philippine Center for Investigative Journalism
3/F Criselda 2 Bldg., 107 Scout de Guia St.
Brgy. Sacred Heart, Quezon City 1104
Note: We will acknowledge receipt of mailed applications via email or text.

Questions?
Please contact the PCIJ Training Desk at (02) 410-4768 or training@pcij.org

More PCIJ Regional Seminars

Mindanao (selection process over)
Seminar schedule: July 25- 29, 2013

NCR (Metro Manila)
Application deadline Aug. 1, 2013
Seminar schedule: Sept. 19-22, 2013

What to expect at the seminar

Through combined onsite and field learning sessions, the seminar aims to enhance the participants’s investigative reporting skills and practice, and offer a framework for analyzing media killings and safety issues in the context of governance, the culture of impunity, and the presence of political clans and private armed groups in many parts of the country. The seminar also seeks to highlight the role of the police and human rights organizations as vital sources of information for journalists.

The seminar will feature lecture-discussions and workshops to identify potential risks and practical safety tips when covering dangerous assignments. A Story Development Workshop will give participants an opportunity to pitch story proposals that the PCIJ may consider for fellowship grants and editorial supervision.

Experts from the academe, national media organizations, the police, human rights agencies and organizations, and data repository agencies will lead the discussions.

Expense reports of 5 new senators, PNoy’s LP, NPC still bad, defective

IF RULES on campaign finance will be followed, only five winning senatorial candidates will be allowed to assume office on June 30, 2013. That is, until the rest of the candidates and their nominating parties submit a complete Statement of Election Contributions and Expenditures (SOCE) by June 29, 2013.

The question is: Should the seven other new senators who have yet, together with the political parties that nominated them, to fully comply with their obligation in law to file true and complete SOCEs be allowed to assume office?

As of June 25, seven winning candidates for senator had actually “fully complied” with the SOCE requirements: Alan Peter S. Cayetano, Francis Joseph ‘Chiz’ G. Escudero, Mary Grace Poe-Llamanzares, Cynthia A. Villar, Paolo Benigno ‘Bam’ A. Aquino IV, Gregorio ‘Gringo’ B. Honasan II, and Loren Regina ‘Loren’ B. Legarda.

The Campaign Finance Unit (CFU) of the Commission on Elections (Comelec), however, recommends that Aquino and Legarda not be allowed to assume office until their respective nominating parties, the Liberal Party (LP) led by President Aquino and the Nationalist People’s Coalition (NPC), submit supporting information and documents.

Too, it was only today, June 27, that the opposition United Nationalist Alliance (UNA) led by Vice President Jejomar Binay finally submitted receipts and other documents to correct its SOCE deficiencies.

Republic Act No. 7166 (Synchronized Elections Law) requires every candidate and political party to submit a “full, true and itemized” SOCE within 30 days after Election Day. Failure to do so prohibits a winning candidate from entering office until he/she has filed such statement.

The legal prohibition from assuming office also applies to a winning candidate if the political party that nominated him/her fails to file its SOCE.

The Comelec Law Department and CFU will issue a Certificate of Compliance to candidates, parties, and party-list groups that submitted “complete and compliant campaign finance disclosure reports and statements.” This certificate is required before a candidate is allowed to take oath of office.

Candidates and parties were required to submit the SOCE until June 13, 2013. Comelec, however, gave candidates and parties a grace period lasting until June 29 to fully comply with SOCE requirements.

The grace period was given to encourage candidates and parties to file and complete their submissions. But a running fine of P1,000 per day was to be applied for those found in non-compliance.

Read out full report in www.pcij.org