Comelec orders P100K limit to cash withdrawals

by RG Cruz, ABS-CBN News

But Bangko Sentral ng Pilipinas opposes resolution

MANILA (1st UPDATE) - After its unprecedented expansion of the 2-day election liquor ban to 5 days in the name of an orderly election, the Commission on Elections (Comelec) now imposes a "money ban" for the first time to prevent vote buying.

Comelec Chairman Sixto Brillantes said the poll body promulgated Resolution 9688 after a unanimous vote, though Commissioner Lui Guia has a reservation.

"We're banning withdrawals of cash starting tomorrow and up to election day. Merong threshold amounts. We will allow only up to P100,000 per day so no restraint of trade. Commerce will still move, bigger transactions can be transacted through checks. Bawal lang ang cash transactions," he said.

P500K limit to cash transport

Aside from this, the Comelec is also banning the transport of more than 500,000 pesos in cash for the next 5 days.

"The other one is possession of cash; carrying,  transporting of cash amounting to half a million shall be presumed to be vote buying," he said.

Brillantes previously said that the poll body is coming up with a novel way of addressing vote buying which, in his experience as an election lawyer, becomes rampant in the days closer to election day.

"We're regulating (to) prevent circulation of cash which can be used for vote buying. Historically, marami nagwiwithdraw ng cash during the few days before elections," he said.

Brillantes said the ban covers everyone, and limits withdrawals to P100,000 daily for the next 5 days till election day.

BSP opposes Comelec reso

Brillantes said they promulgated the resolution, and deputized the Bangko Sentral ng Pilipinas (BSP) to implement the provision on the limit to daily withdrawals.

This is despite the objections of the BSP.

"The advice is that they do not agree with resolution and gave us advice that if it is not that important, we shouldn't promulgate it anymore," he said.

Brillantes phoned the BSP in front of the media to inform them that the resolution will be promulgated despite the central bank's advice.

"Titignan namin kung ayaw nila implement ang resolution namin. Constitutitonal ang aming basis, constitutional din basis nila," he said.

The central bank, in a press statement late Tuesday night, expressed doubts on the effectivity of the Comelec resolution.

"The Bangko Sentral ng Pilipinas supports the Comelec's goal to ensure clean and honest elections in the Philippines. However, the BSP believes that limiting cash withdrawals to P100,000 and for the monetary authority to enforce this may not the best way to achieve the goal of ensuring clean and honest elections," the central bank said.

It warned that limiting cash withdrawal and check clearing beyond P100,000 may disrupt normal business and commercial transactions in the country.

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

The move will violate Republic Act 1405,  or the law secrecy on peso deposits, and RA 6426 or the secrecy on foreign currency deposits.

Constitutional bases

Brillantes explained that the Comelec has the authority to deputize all government agencies during election time.

However, the BSP allegedly countered with the independence of the BSP under the Constitution.

Brillantes, however, said that even the armed forces can be deputized by the Comelec---even if their commander-in-chief is the president.

Resolution 9688 cited these powers of the Comelec during the election period in its whereas clauses:

"The commission, in pursuit of its constitutional mandate to ensure honest and credible elections, finds it necessary to adopt a multi-tiered approach to prevent and apprehend vote buyers."

Brillantes said the poll body had long been considering the ban.

"We discussed this when we were discussing vote buying. Alam ko ito, March pa lang sabi ko we all keep quiet. Let's draft the resolution pero we'll take it up when election day is very close para di malaman ….para biglaan, one week before the elections," he said.

Brillantes explained that one way to prevent vote buying is to prevent cash circulation.
"Sa experience natin, wala pang nakukulong sa vote buying. As practitioner of many years, alam ko maraming lumalabas a few days (before the elections)," he added.

Brillantes, however, said the resolution does not specify penalties nor state if any violation will be considered an election offense.

Exemptions, deterrent effect

Commercial establishments can ask the poll body for exemptions.
Brillantes said he doesn't see any effects on payrolls because payrolls are usually paid in ATMs.

"We're deputizing the central bank to enforce the first portion. Sila lang ang makakapagsabi sa bangko wag withdraw more than  100,000 pesos a day. Medium-sized businesses will not be affected. Ang maapektuhan malalaking malls, kailangan nila ng cash para magtinda. Probably they can get exemptions."

Brillantes also said they are after the deterrent effect of the resolution.

"Hindi hulihan ito, more on deterrent [effect]. With such a  resolution, we expect maski paano magkakeffect sa pultiko. Bakit ka pupunta sa bangko para magwithdraw ng milyon milyon?"
The resolution specifically prohibits "the withdrawal of cash, encashment of checks and conversion of any monetary instrument into cash from May 8 to 13, 2013 exceeding One Hundred Thousand Pesos or its equivalent in any foreign currency, per day in banks, finance companies, quasi-banks, pawnshops, remittance companies and institutions performing similar functions However, all other non-cash transactions are not covered."

The resolution also orders existing Comelec checkpoints nationwide to implement the ban on the transport of cash in excess of half a million.

"For this purpose. all cash being transported and carried exceeding such amount shall be presumed tor the purpose of vote-buying and electoral fraud in violation of the money ban. To implement the ban, all existing COMELEC checkpoints all over the Philippines are directed to conduct a 24-hour money ban checkpoint, in addition to the gun ban checkpoint, for the duration of the period."

It also orders the NBI and PNP Intelligence Services to conduct surveillance and intelligence operations to counter vote buying, and if necessary, entrap vote buyers and vote sellers.

Gov't offices may be exempted

The Commission en banc may exempt government agencies and instrumentalities, and private persons and entities from this Resolution on valid and exigent grounds. In urgent cases, the respective Provincial Election Supervisor or in the case of the National Capital Region, its Regional Director, may also issue exemptions that shall be valid unless revoked by the Commission en banc or the Chairman whenever it is not in session.

The ban on the transport of cash "shall not apply to farmers. Merchants and other persons similarly situated travelling to and from Manila or other business destinations in the ordinary course of their business upon presentation or proof of their occupation and the transaction which generated the exceeding the threshold."

The Comelec has already exempted itself from the money ban.

Comelec Resolution 9688