The electoral watchdog Commission on Elections’ Political Finance and Affairs Department (PFAD) has dropped its investigation into the alleged illegal campaign donation of ₱30 million to Senator Francis Escudero by a construction-contractor, finding no breach of election law.
The contractor at the center of the controversy, Centerways Construction and Development Inc. — led by its president, Lawrence Lubiano — was accused of making a prohibited contribution, because under Section 95(c) of the Omnibus Election Code (OEC), companies holding government contracts or subcontracts are barred from donating to electoral campaigns.
In a nine-page resolution, PFAD concluded that Lubiano and Centerways are legally distinct entities. The mere fact that Lubiano serves as Centerways’ president is insufficient, in the absence of evidence showing fraud, bad faith, or an attempt to evade legal obligations, to treat the company and Lubiano as one.
Because PFAD found “no evidence to support a complaint that Section 95(c) of the OEC was violated,” the investigation was terminated and Escudero’s acceptance of the donation was deemed legally permissible.
While Lubiano admitted that he personally contributed ₱30 million to Escudero’s 2022 senatorial campaign, he maintained that the funds came from his personal account — not from Centerways. That distinction was central to PFAD’s decision.
Under the OEC, contractors (or firms engaged in government works) are prohibited from making campaign donations.
However, PFAD upheld the legal doctrine of separate juridical personality — meaning a juridical person (the corporation) and a natural person (Lubiano) are different, unless there is strong evidence to prove they are effectively “aliases” of one another.
Because PFAD found no proof that Lubiano used the company as a conduit for the donation, and because the contribution was declared and is purportedly personal, the donation to Escudero is considered lawful.
In September 2025, Lubiano admitted giving the ₱30 million donation to Escudero — but insisted it came from his own pocket and not from Centerways.
In early October, PFAD had issued a show-cause order against Escudero and Lubiano, calling on them to explain the donation under the OEC.
Escudero submitted a manifestation, arguing the donation was legal, properly declared, and complied with existing rules.
Now, with PFAD’s resolution, that complaint has been formally closed.
