2013: Comelec Money Ban

May 10, 2013

Court issues stay order on Comelec money ban

THESUPREME COURT (SC) has issued a stay order on a Commission on Elections (Comelec) resolution that sought to limit cash withdrawals to P100,000 per day starting Wednesday until Monday, election day, to curb vote buying.

During an emergency press briefing early Friday, SC Spokesperson Theodore O. Te announced that Chief Justice Maria Lourdes P.A. Sereno has issued an indefinite status quo ante order (SQAO) on the so-called ‘money ban’ resolution promulgated by Comelec on Tuesday.

“[C]onsidering the allegations contained, the issues raised and the arguments adduced in the petition, as well as the recent amendents (Resolution No. 9688-A) of the assailed Comelec Resolution No. 9688 dated May 7, 2013, it is necessary and proper to issue a status quo ante order,” said Mr. Te.

The chief justice acted on the petition filed on Thursday by the Bankers Association of the Philippines (BAP) which argued that the Comelec directive “immediately and adversely affects the Constitutional rights of all depositors and the banking industry.”

Mr. Te also said Comelec officials are required to comment on the petition filed by BAP within ten days from receipt of notice.

The Comelec on Tuesday issued Resolution No. 9688 deputizing the Bangko Sentral ng Pilipinas (BSP) to restrict withdrawals of cash or encashment of checks worth more than 100,000 per day. The transportation and possession of half-a-million pesos in cash would also be prohibited. The ban was set on May 8 to Election Day, or May 13.

The poll body, however, after receiving criticisms from the BSP and the private sector, issued an amended resolution, Resolution No. 9688-A, which allows banks to decide on exemptions to the money ban.

Nevertheless, the amended resolution still did not sit well with those that will implement the resolution.

In a statement on Thursday, after the Comelec issued Resolution No. 9688-A, BAP President Lorenzo V. Tan said he believes the amended resolution “places undue burden on banks which now are given “discretion” to apply the money ban based on “regular” and “non-regular” clients. The banks have a legal and contractual obligation to release deposits to all withdrawing clients.”

President Benigno S.C. Aquino also said on Thursday that he did not give his concurrence on the money ban, which is a requirement under the 1987 Constitution.

Comelec officials have yet to comment on the SQAO. -- Daryll Edisonn D. Saclag


May 08, 2013

Comelec money ban illegal, says BSP

ELECTION OFFICIALS have been forced to rethink a money ban it says will prevent vote-buying in next week’s polls, with the central bank yesterday calling the move illegal.

The Bangko Sentral ng Pilipinas (BSP) said that while it supported the Commission on Election’s (Comelec) goal of clean and honest elections, limiting financial transactions would not be the solution to vote-buying.

The Comelec on Tuesday issued an order deputizing the BSP to ban cash withdrawals exceeding P100,000 per day. The transportation and possession of P500,000 in cash will also be prohibited. The ban -- the first of its kind in the country -- was to be implemented starting yesterday up to May 13, election day.

"Limiting cash withdrawal and check clearing beyond P100,000 may disrupt normal business and commercial transactions in the Philippines," the BSP said in a statement.

It added, "The BSP is also constrained from enforcing the Comelec resolution because this would necessarily entail looking into bank deposit accounts.

"This is essentially unsound and in violation of the Republic Act 1405 (Secrecy on Peso Deposits) and Republic Act 6426 (Secrecy on Foreign Currency Deposits)."

Banks said they would not follow the Comelec until regulators asked them to do so.

"This [ban] will hamper the commercial and business transactions of banks in general. Workers and suppliers of certain industries are paid weekly. Public markets operate on a cash-basis daily," Bankers Association of the Philippines President Lorenzo V. Tan said in a text message.

"It is business as usual for us. We haven’t received directives from our regulators," Mr. Tan added.

BDO Capital & Investment Corp. President Eduardo V. Francisco said, "If the BSP does not issue a directive, then we won’t comply with the Comelec as a lot of our clients need to withdraw in excess of P100,000 for their daily operations."

Business groups likewise backed the banking sector.

The limit of P100,000, said Management Association of the Philippines President Melito S. Salazar, Jr., would affect the daily operations of businesses, especially small and medium enterprises.

Donald G. Dee, vice-chairman of the Philippine Chamber of Commerce and Industry, added: "Businesses who are too small to automate wages, for example, still give out cash. What will happen to workers who are supposed to get their wages on Saturday?"

In Iloilo City, Iloilo Business Club executive director Ma. Lea Victoria E. Lara, said the ban would lead to complications.

"While this is a concrete action by Comelec to address or curb the practice, there should have been a more massive campaign to include getting the commitment of candidates not to buy votes," Ms. Lara said.

Eldrid C. Antiquiera, a member of the Integrated Bar of the Philippines’ Commission on Bar Discipline, said the money ban was contrary to the equal protection and right to privacy provisions of the Constitution.

Malacañang has ordered a review of the money ban and the Comelec, while insisting on its right to issue the directive, said it would review the matter.

"We have been receiving several complaints and concerns about it. And, as such, the President has asked the relevant Cabinet secretaries to look into the matter," Deputy Presidential Spokesperson Abigail F. Valte said.

Justice Secretary Leila M. de Lima, Trade Secretary Gregory L. Domingo and Finance Secretary Cesar V. Purisima have been directed to conduct the review, she said.

Comelec Chairman Sixto S. Brillantes, Jr., meanwhile, said: "The BSP has a formal letter to us, advising us if possible not to implement [the ban]. I don’t think we should take their advice, we are an independent [body]."

But Commissioner Lucenito N. Tagle, in a text message said: "Will discuss that [the ban] in our en banc."

Comelec spokesperson Arthur James B. Jimenez enjoined the central bank to come up with a better solution.

"It would be helpful if the BSP could give us its objections formally. And if they object to the solution we propose, they could help us formulate a solution they can support," Mr. Jimenez said.

source:  Businessworld