Manila, Philippines — The Land Transportation Franchising and Regulatory Board (LTFRB) is asking at least 21 Transport Network Companies (TNCs) to explain the inflated list of fuel subsidy beneficiaries in the ride-hailing service sector.
The LTFRB has also issued a Show Cause Order (SCO) to determine the circumstances that caused the discrepancy in the number of TNVS beneficiaries.
According to LTFRB Chairman Atty. Vigor Mendoza, the agency aims to uncover the truth behind the inflated list of fuel subsidy beneficiaries.
Staff are also looking into whether this is a deliberate attempt to increase the number of beneficiaries or a manifestation of negligence and lack of proper systems among the companies involved in the issue.
The issue arose after the agency conducted a verification of the beneficiaries of the said subsidy, where LTFRB personnel and other government personnel learned that the number of beneficiaries for TNVS was irregularly high.
Based on the submitted list of TNCs, there are more than 200,000 motor taxi riders operating as TNVS even though the authority is still pending with the LTFRB, there are also inactive riders still included in the list.
In the issued Show Cause Order (SCO), the agency ordered the TNCs to submit a notarized explanation as to why their authority to operate as Transport Network Companies should not be suspended or revoked.
According to the LTFRB, among the issues that the companies must answer is the alleged inclusion in their applications of vehicles without the necessary authorization or franchise from the agency to operate as TNVS units.
Apart from that, the failure of some TNCs to maintain their original vehicles onboard their platforms was also questioned.
The agency stressed that it is important for TNCs to comply with existing regulations to ensure safety and proper service for commuters.
For now, the LTFRB is still awaiting the explanation of the said companies, which will be the basis for the possible imposition of appropriate penalties, including the suspension or complete revocation of their operations.
Meanwhile, the hearing is set to be held on May 14, while for the 7 platform operators of motor taxis, the hearing will be held on May 15.
He said the companies are only being given five days to explain so that their franchises are not suspended.—Grachella Corazon, Eurotv News