Senator Erwin Tulfo filed on Monday, Oct. 13, a bill seeking to criminalize the so-called “license for rent” scheme, a notorious practice that emerged as a central modus operandi in the past flood control scam probe hearings in the Senate.

In filing Senate Bill 1453, Tulfo, who serves as Acting Chairman of the Senate Blue Ribbon Committee said that under the proposed “License Integrity Act”, lending, borrowing, and fraudulent use of licenses will be given a penalty of imprisonment of not less than three (3) years to not more than twelve (12) years, and/or a fine of not less than Three Hundred Thousand Pesos P300,000.00 but not more than P3,000,000.00.

The said measure will cover not only the contractors’ license in the Department of Public Works and Highways (DPWH) but also the customs brokers in the Bureau of Customs (BOC), and environmental licenses in the Department of Environment and Natural Resources (DENR) will be covered.

“These privileges have often been misused and abused. 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,” Tulfo stated.

In Tulfo’s proposed bill, 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,” the neophyte senator said.

According to Tulfo, the ultimate goal of this measure is 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.