A PHILIPPINE Senator on Monday said he has filed a bill looking to criminalize “license for rent” schemes, where contractors rent out their licenses to dummy companies and public works officials to siphon funds from flood control projects.
Senate bill No. 1453, the License Integrity Bill, filed by Senator Erwin T. Tulfo, seeks to impose jailtime between three years and 12 years on those found lending, borrowing, and fraudulently using their licenses.
It also seeks to impose fines of not less than P300,000 but not more than P3 million on those found renting their contractor licenses.
“These privileges have often been misused and abused,” he said in the explanatory note.
“A disturbing practice has emerged where grantees lend, lease, sell, or otherwise allow third parties to unlawfully use their licenses, while others fraudulently obtain or misrepresent such privileges to cloak illegitimate transactions under the guise of legality,” he added.
Separate congressional probes found that contractors have been colluding with public works officials to siphon off billions in funding for flood mitigation projects.
The proposed measure not only covers the contractors’ license in the Department of Public Works and Highways but also the customs brokers in Bureau of Customs, and environmental licenses in Department of Environment and Natural Resources.
The Senator said that public officials who will issue licenses to unqualified or conflicted applicants will also be penalized administratively and criminally.
“This affirms the nature of licenses and permits as personal, non-transferable privileges subject to the continuing oversight of the State,” he added.
Mr. Tulfo said that the proposed measure also seeks to restore the integrity of government-issued licenses and permits, strengthen accountability, prevent abuses that undermine governance, and ensure that the license privileges serve only their lawful and intended purposes. — Adrian H. Halili
