OCT.

27, 2012

NR # 2905B

House okays bill strengthening the political party system

The House of Representatives has approved on third and final reading a bill institutionalizing and strengthening political parties in the country through reforms in campaign financing through effective and transparent mechanisms during elections. By a unanimous 168 votes, the House approved House Bill 6551 designed to level the playing field among all candidates and political parties during elections and to reduce opportunities for graft and corruption. Principally authored by Rep. Rufus Rodriguez (2nd District, Cagayan de Oro City), the proposed Political Party Development Act of 2012, applies to political parties duly registered with and certified to as such by the Commission on Elections. Parties are also mandated to craft a clear policy agenda and program of governance consistent with their party philosophy and ideals. Under the bill, each party is also mandated to formulate a system on nomination and selection of candidates, in which all party members are involved. The measure mandates that a State subsidy be created to augment the operating funds of the Accredited National Political Parties (APPs) and shall be used directly and exclusively for party development and campaign expenditures. As such, these expenditures include party administration, recruitment and civic education, research and policy development, education and training of members, institution-building and constituent outreach programs, other reasonable logistical and operational expenses that are essential in strengthening the party, operating and traveling expenses, information dissemination, advocacy campaigns, production and distribution of electoral paraphernalia and other expenditures under Section 102 of the Omnibus Election Code. The bill provides that the total amount of state subsidy fund shall be distributed as follows: 5 percent shall be used exclusively for monitoring purposes and the conduct of information dissemination campaigns and voters' education; 30 percent shall be proportionately and ratably distributed to accredited political parties (APPs) represented in the Senate based on the number of seats obtained in the most recent general elections. Moreover, 65 percent shall be proportionately and ratably distributed to APPs in the House of Representatives based on the number of seats obtained in the most recent general elections. Under the measure, voluntary contributions to any political party shall be allowed

up to P1-million if from a natural person, and up to P10-million if from a juridical person. Any contribution in cash or in kind to a political party for campaign purposes, duly reported to the Commission, shall be exempt from donor's tax. It provides also that criteria for eligibility to receive the said fund are based on political representation, organizational strength and mobilization capability, performance and track record of the party. It mandates that disclosure and performance monitoring under this Act shall consist of the following: (a) the Commission on Audit (COA) shall examine the financial reports of the APPs on their use of the State subsidy; (b) APPs shall institute internal control mechanisms to promote accountability and transparency and (c) officials of every APP shall submit a sworn statement of their assets and liabilities to the Commission which shall be made available to the public at least six months before elections. Another vital provision of the bill is appropriation of the amount of P500-million out of the funds of the National Treasury not otherwise appropriated, and the appropriation of P350-million every year thereafter. The Comelec and the Department of Budget and Management are directed to promulgate guidelines to facilitate the release of the funds to every APP, and for the Comelec to promulgate the necessary rules and regulations to effectively implement the provisions of the proposed Act. Other authors of the bill are Reps. Juan Edgardo Angara (Lone District, Aurora), Maximo Rodriguez, Jr. (Party-list, Abante Mindanao), Raymond Democrito Mendoza (Party-list- TUCP), Arthur Yap (3rd District, Bohol) and Elpidio Barzaga, Jr. (Lone District, City of Dasmarias). (30) lvc