• 
FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
.J r I \'i} 
SENfg:38 
S. No. ___ -"-
Introduced by Senator Miriam Defensor Santiago 
v 
EXPLANATORY NOTE 
Wars have inspired changes in our Government's contracting system. Given the nature of 
preparing for and implementing military action and reconstruction efforts, the Government has 
frequently sought and continues to seek goods and services from priv(\te contractors successfully 
to fulfill its mission. Whether the result of necessity or a response to prevailing public 
sentiments, the changes to the procurement system that follow resonate through-out the 
government contracting community. 
This bill is designed to punish individuals or companies that have defrauded the 
government, or that have overvalued goods or services, in connection with military and 
reconstruction missions, and to deter such conduct in the future. The justification for the 
enactment of the bill is due to the lack of contractor accountability, as well as fraud, waste and 
abuse in the contract or the provision of goods or services, directly or indirectly, connected with 
a war, military action, or relief or reconstruction activities. 
~'-- 4, h"~.v- ~y~~ 
4/11'" MIRIAM DEFEI\fOR SANTIA~ 
I 


-, 
FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
. SENt~8 
S.No. ___ _ 
Introduced by Senator Miriam Defensor Santiago 
.J 
1 
AN ACT 
2 
TO PROHIBIT PROFITEERING AoND FRAUD RELATING TO MILITARY ACTION, 
3 
RELIEF, AND RECONSTRUCTION EFFORTS, AND FOR OTHER PURPOSES. 
4 
5 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
6 
Congress assembled: 
7 
8 
SECTION 1. Short Title. This Act may be known as the "War Profiteering Prevention 
9 
Act". 
10 
SECTION 2. Prohibition. Whoever, in any matter involving a contract or the provision 
11 
of goods or services, directly or indirectly, in connection with a war, military action, or relief or 
12 
reconstmction activities within the jurisdiction of the Philippine Government, knowingly and 
13 
willfully--
14 
(a) Executes or attempts to execute a scheme or artifice to defraud the Philippine 
15 
Government; 
16 
(b) Materially overvalues any good or service with the specific intent to defraud and 
17 
excessively profit from the war, military action, or relief or reconstruction 
18 
activities; 
19 
(c) Falsifies, conceals, or covers up by any trick, scheme, or device a material fact; 
20 
(d) Makes any materially false, fictitious, or fraudulent statements or representations; 
21 
or 
22 
(e) Makes or uses any materially false writing or document knowing the same to 
23 
contain any materially false, fieri tious or fraudulent statement or entry. 
24 
1 


• 
25 
SECTION 3. Penalties 
26 
(a) Any person who shall violate any provision of this Act shall upon conviction, be 
27 
subject to a fine of not less than One hundred thousand pesos (PJOO,OOO.OO) or imprisonment of 
28 
not less than six (6)years, or both upon the discretion of the court. 
29 
If the offender is an alien, he shall be deported after service of sentence and payment of 
30 
fine without further deportation proceedings. 
31 
(b) In case the offender is a naturalized citizen, he shall, in addition to the penalty 
32 
prescribed herein, suffer the penalty of cancellation of his naturalization certificate and its 
33 
registration in the civil register and immediate deportation after service of sentence and payment 
34 
of fine. 
35 
(c) Any director, officer or agent of a corporation who shall authorize, order or perform 
36 
any of the acts or practices constituting in whole or in part a violation of Section 2, shall be 
37 
subject to penalties to which that corporation may be subject. 
38 
In case the violation is committ~d by, or in the interest of a foreign juridical person duly 
39 
licensed to engage in business in the Philippines, such license to engage in business in the 
40 
Philippines shall immediately be revoked. 
41 
SECTION 4. Separability Clause. - If any provision or part thereof, is held invalid or 
42 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
43 
valid and subsisting. 
44 
SECTION 5. Repealing Clause. - Any law, presidential decree or issuance, executive 
45 
order, letter of instruction, administrative order, rule or regulation contrary to, or inconsistent 
46 
with the provisions of this Act is hereby repealed, modified or amended accordingly. 
47 
SECTION 6. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
48 
publication in at least two (2) newspapers of general circulation. 
49 
Approved. 
2