Taxpayers funding political campaigns?

Technology entrepreneur Ann Cuisia has called for sweeping reforms to the Philippines’ campaign finance system, warning that opaque political funding and alleged kickbacks from government contracts could perpetuate corruption and allow politicians to finance their reelection campaigns using public funds.

Cuisia, founder and CEO of TraXion Tech, proposed a Political Finance Integrity and Anti-Kickback Act that would raise campaign spending limits, require faster disclosure of political donations and strengthen safeguards against contributions linked to government contracts.

A financial technology and blockchain advocate with more than 20 years of experience in digital transformation, Cuisia established TraXion Tech to develop financial technology solutions for banks, cooperatives and underserved communities. Her company’s projects include digiCOOP, a digital platform providing financial services to cooperative members, and Gava, a crowdfunding platform for social causes.

Cuisia, who previously worked in information technology at RCBC, Citibank and Robinsons Land Corp., was also recognized as a Blockchain Champion at the Philippine Block Awards in 2022. She has since participated in policy discussions involving cybersecurity, government transparency and digital governance.

In her commentary, Cuisia described how a contractor acquaintance explained the alleged “SOP” system, in which commissions and kickbacks could consume 20 percent to 30 percent of a government project’s contract value before construction begins.

She illustrated the potential losses using a hypothetical P1-billion infrastructure project, where a 20 percent kickback would amount to P200 million in diverted funds.

Cuisia acknowledged that not all government projects involve corruption but argued that such practices warrant investigation, particularly when illicit proceeds are allegedly used to finance political campaigns.

She warned that the financial relationship between politicians seeking campaign funds and contractors pursuing government projects could create a cycle in which public contracts become a means of sustaining political influence.

Under Republic Act 7166, enacted in 1991, most candidates for congressional and local positions affiliated with political parties are limited to campaign spending of P3 per registered voter in their constituencies. Independent candidates without party support may spend P5 per voter.

Cuisia argued that the decades-old spending ceilings no longer reflect the actual cost of running political campaigns.

She proposed raising the limit for most candidates to P30 per registered voter, alongside reforms that would allow candidates to raise legitimate campaign funds more transparently.

Her proposal would also encourage small contributions from ordinary citizens, including donations of P100 or P500, to reduce candidates’ dependence on wealthy political financiers.

Faster disclosure, tighter safeguards

Central to Cuisia’s proposal is a requirement for candidates to maintain dedicated campaign bank accounts and publicly disclose contributions and expenditures within 48 hours.

She also wants corporate donors and their beneficial owners identified, with donation records cross-checked against government procurement contracts to detect potential conflicts of interest.

Existing election laws already prohibit government contractors from making political contributions, while qualified domestic corporations may donate subject to restrictions.

Candidates and political parties are currently required to file statements of contributions and expenditures within 30 days after an election.

Cuisia argued that stronger digital reporting systems could help authorities identify suspicious transactions earlier and prevent illicit payments from being concealed as legitimate political donations.

Her proposed legislation would also impose tougher penalties on individuals and organizations found disguising kickbacks as campaign contributions.

“We already have much of the technology and legal infrastructure to do this. What we lack is the political will to connect the systems and enforce the rules,” Cuisia said.

The technology executive stressed that campaign finance reform would not eliminate corruption overnight but could make political contributions more transparent and reduce opportunities for abuse.

“If politicians need money to get elected, let them ask the people for support,” she said.

“Stop making taxpayers finance their reelection through overpriced government projects.”