Section 46Sec./Art. 46

Acting as Intermediaries for Graft and Corrupt Practices; Penalties. - Any person, natural or juridical, who allows itself to be used for fraud, or for committing or concealing graft and corrupt practices by the directors, officers, or other employees of the MIC as defined under pertinent laws, rules and regulations, shall be liable for a fine ranging from One million pesos (P1,000,000.00) to Five million pesos (P5,000,000.00), imprisonment of six (6) years, and perpetual disqualification from holding public office.

When there is a finding that any of its directors, officers, employees, agents, or representatives are engaged in graft and corrupt practices, the Board of Director's failure to install: (a) safeguards for the transparent and lawful delivery of services; and (b) policies, code of ethics, and procedures against graft and corruption shall be prima facie evidence of corporate liability under this section.