Comelec clears Chiz Escudero, Lawrence Lubiano over P30-M campaign donation

MANILA, Philippines — The Commission on Elections has cleared Sen. Chiz Escudero for receiving a P30-million campaign donation from construction magnate Lawrence Lubiano, ruling that this did not violate election laws as it was a "personal" donation. 

The poll body's Political Finance and Affairs Department shared the outcome of its investigation into Escudero and Lubiano in a resolution on Wednesday, November 26. It said it found "no evidence" that Lubiano — president of Centerways Construction and Development Inc. — broke election rules when he contributed to Escudero's 2022 senatorial campaign.

The ruling may now become a precedent for future cases involving contractors' donations to candidates' campaigns.

Overall, the resolution is clear that there was an actual donation made by Lubiano to Escudero while his firm held active government contracts, including eight flood control projects with completion periods overlapping the 2022 campaign and elections. One project alone — a P111.7-million flood mitigation work in Juban, Sorsogon — ran from May 2021 through early March 2022, covering part of Escudero's campaign period.

However, the Comelec sided with the respondents' argument that Lubiano made the contribution in his personal capacity rather than as Centerways' president. The poll body ruled that, without clear evidence of fraud or bad faith, it cannot "pierce the corporate veil" simply because the individual concerned leads a company. 

"Indeed, this Office concurs that Mr. Lubiano is not Centerways, and Centerways is not Mr. Lubiano," the Comelec resolution read. 

President Ferdinand Marcos Jr. revealed in his State of the Nation Address that 15 contractors cornered a whopping P100 billion in flood control projects over three years. Centerways was among those named.

After the disclosure, Lubiano was identified as Centerways' president and a donor to Escudero's campaign, which raised questions about potential violations of election law.

Section 95(c) of the Omnibus Election Code bars "natural and juridical persons who hold contracts or sub-contracts to supply the government" from contributing to "partisan political activity," whether "directly or indirectly."

Comelec launched its investigation on September 11, requiring Lubiano and Escudero to explain why no election offense case should be filed against them.

In sworn statements, both admitted they were "close-knit friends." Lubiano confirmed the P30-million contribution but said Escudero had no knowledge of Centerways' government contracts "during the time of the contribution."

They argued the donation violated no law because Lubiano donated in his personal capacity, not as a corporate officer, and that he is legally distinct from Centerways under the doctrine of separate juridical personality.

Comelec accepted this defense, ruling the ban on campaign donations "cannot be extended to respondent Lubiano who contributed by cash in his personal capacity."

The resolution acknowledged allegations that Centerways may have used Lubiano as a conduit to circumvent the law, but said "the evidence on record does not establish such fact."

"No evidence gathered so far that would establish that he acted merely as an instrumentality or alter ego of the corporation to perpetrate fraud or commit any act prohibited under Sec. 95 (c) of OEC," the resolution stated.

Between 2022 and 2024, Centerways secured more than 80 flood control contracts worth over P5.1 billion nationwide. Of these, 53 projects worth P2.85 billion were in Sorsogon — Escudero's home province, where he served as governor and district representative.

Two of Lubiano's brothers hold office in Sorsogon: Donsol Mayor Chuck Lubiano and Sorsogon City Councilor Lester Lubiano. Both belong to the Nationalist People's Coalition, Escudero's party.

In Donsol and Sorsogon City, where the Lubiano brothers serve, Centerways won 23 of 42 completed flood control projects from 2022 to 2024, worth P1.086 billion.

Escudero endorsed both Lubiano brothers in the 2025 local elections.

— with reports by Dominique Nicole Flores