Manila: Senator Erwin Tulfo, acting chairperson of the Senate Blue Ribbon Committee, is set to file on Monday afternoon a measure that would criminalize the 'license for rent' scheme, which surfaced as a major modus operandi during Senate hearings on the flood control scam. Under the proposed License Integrity Act, the lending, leasing, or fraudulent use of licenses will be punishable by imprisonment of not less than three years but not more than 12 years, and/or a fine ranging from PHP300,000 to PHP3 million.

According to Philippines News Agency, the measure covers not only contractors' licenses under the Department of Public Works and Highways, but also those issued to customs brokers by the Bureau of Customs and environmental permits granted by the Department of Environment and Natural Resources. 'These privileges are often abused. There have been alarming cases where license holders lend, lease, sell, or otherwise allow third parties to illegally use their licenses, while others fraudulently obtain or assume licenses to conceal unlawful transactions,' Tulfo said.

The senator's proposal also seeks to penalize government officials who issue licenses to unqualified applicants or those with conflicts of interest, both administratively and criminally. 'This measure reinforces that licenses and permits must remain personal and non-transferable privileges,' Tulfo added. He said the bill aims to restore the integrity of government-issued licenses and permits, strengthen accountability, and prevent abuse.