Bill aims to prohibit personal use of unspent campaign funds

A Senate bill that Senate floor leader Justo Quitugua (R-Saipan) has introduced seeks to prevent politicians from pocketing unspent donated campaign funds for personal use.

Senate Bill 21-59 not only prohibits the personal use of political campaign funds but also provides that any unused campaign funds be returned to the donor, or donated to charity, among others.

“Currently there’s no statute. Any politician who did fundraising and did not use up all the funds raised for the campaign activities, they can take the remaining and walk away with it and use it for whatever they want to use it for, especially if you quit, or you lost the election,” he said in an interview.

The senator said that he crafted the bill to make sure that all funds raised will be used solely for a candidate’s political campaign, and not for personal donation or personal activities.

“It should be strictly for your campaign activities,” Quitugua said. “After you’re done and there’s leftover, you should either return the money to the donors, donate it to legitimate nonprofit organizations, or you can donate it to a political party.”

Under S.B. 21-59, campaign funds are prohibited from being used to pay for any residential or household items, supplies, or expenditures, including mortgage, rent, or utility payments for any part of the candidate’s or his/her family’s residence and non-residential property; clothing other than campaign-related; and tuition payments.

Campaign funds cannot also be used to pay dues, fees, and gratuities at a country club, health club, gym, recreational facility, or other nonpolitical organizations, unless they are part of a specific fundraising event that takes place on the organization’s premises.

It will also be illegal to use campaign funds to pay the salaries of family members, unless the person is providing bona fide services to the campaign, and only within the fair-market value of the services provided.

It will also be prohibited to use the money to pay for admission to sports events, concerts, and any other forms of entertainment, unless part of the campaign; and the funds cannot be used for monetary donations or chenchule given to individuals for any personal use while campaigning for an elected office.

The senator said that using campaign funds for personal purposes is tantamount to corruption. “The people who are donating to your campaign, they trust they’re [going to] help you with your election or reelection, but they didn’t know that there’s leftover, and you’re using it for personal, which the donors did not intend for you to use it for,” Quitugua said.

Based on the bill, any unused campaign fund may be maintained in a campaign account; transferred to a newly-established political action committee or ballot question advocate; donated to a tax-exempt charitable organization, to a candidate for public office, political organizations, or action committee, or to the CNMI government; or be returned to the donor.

Violators will be fined not greater than $2,000 or a prison-term of not more than 60 days.