Senator Erwin Tulfo is pushing a new law that would impose prison terms and heavy fines on individuals and government officials involved in the so-called “license for rent” scheme — a practice uncovered during the Senate’s investigation into alleged anomalies in public infrastructure projects.
Tulfo, who chairs the Senate Blue Ribbon Committee, said he will file the proposed License Integrity Act on Monday afternoon.
The bill aims to stop the illegal lending, leasing, and use of government-issued licenses, a tactic contractors and brokers have allegedly used to conceal questionable transactions.
“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 measure will cover a wide range of permits — from contractors’ licenses issued by the Department of Public Works and Highways (DPWH), to customs accreditations granted by the Bureau of Customs, and even environmental clearances released by the Department of Environment and Natural Resources.
Under the proposal, offenders could face imprisonment of three to 12 years and pay fines between ₱300,000 and ₱3 million.
It also seeks to hold government officials liable if they knowingly approve licenses for unqualified applicants or issue them despite conflicts of interest.
“This measure reinforces that licenses and permits must remain personal and non-transferable privileges,” Tulfo said.
The senator said the bill is part of a broader legislative effort to restore public trust after Senate hearings revealed how fraudulent licenses have been used to win contracts or bypass regulatory requirements.
He added that stricter rules would help protect public funds and make sure permits serve their intended purpose.
