SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.No. 
1138 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
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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 private 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 throughout 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 accOlmtability, 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. 
1 


SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
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Introduced by Senator Miriam Defensor Santiago 
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AN ACT 
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TO PROHIBIT PROFITEERING AND FRAUD RELATING TO MILITARY ACTION, 
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RELIEF, AND RECONSTRUCTION EFFORTS, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Short Title. - This Act may be known as the "War Profiteering Prevention 
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Act", 
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SECTION 2. Prohibition. - Whoever, in any matter involving a contract or the provision 
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of goods or services, directly or indirectly, in connection with a war, military action, or relief or 
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reconstruction activities within the jurisdiction of the Philippine Government, knowingly and 
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willfully·· 
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(a) Executes or attempts to execute a scheme or artifice to defraud the Philippine 
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Government; 
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(b) Materially overvalues any goods or services with the specific intent to defraud and 
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excessively profit from the war, military action, or relief or reconstruction activities; 
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(c) Falsifies, conceals, or covers up by any trick, scheme, or device a material fact; 
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(d) Makes any materially false, fictitious, or fraudulent statements or representations; or 
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(e) Makes or uses any materially false writing or document knowing the same to contain 
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any materially false, fictitious, or fraudulent statement or entry. 
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SECTION 3. Penalties. - (a) Any person who shall violate any provision of this Act 
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shall, upon conviction, be subject to a fine of not less than One hlmdred thousand pesos 
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(J!100,000.00) or imprisonment of not less than six (6) years but not more than twelve (12) years, 
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or both, upon the discretion ofthe court. 
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If the offender is an alien, he or she shall be deported after service of sentence and 
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payment of fine without further deportation proceedings. 
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(b) In case the offender is a naturalized citizen, he or she shall, in addition to the penalty 
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prescribed herein, suffer the penalty of cancellation of his or her naturalization certificate and its 
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registration in the civil register and immediate deportation after service of sentence and payment 
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of fine. 
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( c) Any director, officer, or agent of a corporation who shall authorize, order, or perform 
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any of the acts or practices constituting in whole or in part a violation of Section 2, shall be 
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subject to penalties to which that corporation may be subject. 
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In case the violation is committed by, or in the interest of a foreign juridical person duIy 
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licensed to engage in business in the Philippines, such license to engage in business in the 
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Philippines shall immediately be revoked. 
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SECTION 4. Separability Clause. - If any provision or part thereof is held invalid or 
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unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
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valid and subsisting. 
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SECTION 5. Repealing Clause. - Any law, presidential decree or issuance, executive 
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order, letter of instruction, administrative order, rule, or regulation contrary to or inconsistent 
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with the provisions of this Act is hereby repealed, modified, or amended accordingly. 
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SECTION 6. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
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publication in at least two (2) newspapers of general circulation. 
Approved, 
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