Metro Manila (CNN Philippines, July 24) — The Anti-Red Tape Authority (ARTA) took the side of hatchback ride-sharing operators and ordered the Land Transportation Franchising and Regulatory Board (LTFRB) to explain alleged irregularities in its policies.
ARTA Director General Jeremiah Belgica sent the formal notice to LTFRB Chairman Martin Delgra III on Wednesday following complaints from Transport Network Vehicle & Regulatory Vehicle Services (TNVS) applicants when the public transport regulator rejected applications from drivers using hatchback cars.
Belgica said the anti-red tape agency “identified and determined” several irregularities committed by LTFRB, such as failure to enforce Memorandum Circular No. 2018-005, which will lift the hatchback ban with certain conditions.
LTFRB Memorandum 2018-005 allows the use of these compact vehicles until 2021, but the regulator has started deactivating drivers from ride-sharing apps and refused to accept new applicants two years ahead of the deadline, citing safety concerns.
ARTA said the regulator also failed to act upon applications for issuance or renewal of provisional authority within processing time. Amidst the complaints from TNVS applicants, ARTA said LTFRB failed to conduct hearings and render decisions for an “unreasonable length of time.”
Belgica also said LTFRB imposed undue regulatory burden and cost to applicants and forced them to submit additional requirements without due cost, such as bank conformity and proof they have a garage.
ARTA also pointed out that LTFRB was “inconsistent” and had “arbitrary” interpretations and implementations of regulations on TNVS applications.
With these findings, ARTA gave LTFRB three days to submit an explanation.
The Department of Transportation (DOTr) on July 18 ordered LTFRB to to allow hatchback ride-hailing units to operate as public transport for only three years, and only in Metro Manila. Hatchback drivers will also be required to charge a lower fare.
JUST IN: Anti-Red Tape Authority rules in favor of hatchback TNVS drivers, finds irregularities in LTFRB‘s accreditation processes and policies. The body orders LTFRB to send a written explanation within the next 3 days | @makoipopioco pic.twitter.com/A8OkkaE6AZ
— CNN Philippines (@cnnphilippines) July 24, 2019
