Senator Erwin Tulfo is set to file a bill that will make it a criminal offense to engage in the so-called “license-for-rent” scheme used to bid for government infrastructure projects.
Tulfo said the scheme was uncovered during the Senate’s probe into alleged irregularities in flood control projects, where contractors’ licenses were reportedly being rented out to dummy companies, with the alleged involvement of some Department of Public Works and Highways (DPWH) officials.
“These privileges have often been misused and abused,” Tulfo said.
“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.”
Under his proposed measure, titled the “License Integrity Act,” lending, borrowing, or fraudulent use of government-issued licenses will be punishable by imprisonment of three to 12 years and/or a fine ranging from ₱300,000 to ₱3 million.
The proposed law will cover contractors’ licenses under the DPWH, customs brokers’ licenses under the Bureau of Customs (BOC), and environmental permits under the Department of Environment and Natural Resources (DENR).
It also seeks to penalize public officials who issue licenses to unqualified or conflicted applicants, imposing both administrative and criminal liability.
Tulfo, who chairs the Senate Blue Ribbon Committee, said the measure aims to restore integrity in the issuance of licenses and permits, strengthen accountability, and prevent abuses that erode public trust.
“This affirms that licenses and permits are personal, non-transferable privileges subject to the continuing oversight of the state,” Tulfo said.
