Metro Manila, Philippines – The transport regulator has issued show cause orders to 21 transport network companies (TNCs) for exceeding the limit of number of drivers and vehicles.
In a briefing, Land Transportation Franchising and Regulatory Board (LTFRB) chief Vigor Mendoza said the companies have five days to explain why their authority to operate should not be suspended or revoked.
The agency cited possible violations, including illegally onboarding vehicles and failing to maintain their registered units, some of which may have shifted to other platforms or stopped operating. The firms were also directed to submit a list of their drivers and corresponding license plates.
It set a hearing for Thursday, May 14, with representatives of the concerned firms required to attend.
“We want to ferret out the truth in relation to this incident. Is there a deliberate attempt to increase the number of beneficiaries on their part, or is this a case of negligence and incompetence in complying with the LTFRB order?” Mendoza said.
The issue surfaced during the verification of beneficiaries of cash assistance and fuel subsidies amid rising oil prices due to the Middle East crisis.
According to the LTFRB, TNVS units should only number 54,000, but around 197,000 have been operating. Motorcycle taxis are limited to over 78,800 units, but more than 252,000 are in operation.
Mendoza said show cause orders will also be issued against seven motorcycle taxi platforms, with hearings set on May 15.
He said onboarding vehicles without authority is tantamount to illegal operations, punishable with fines ranging from ₱20,000 to ₱50,000 per unit, in addition to possible suspension or revocation of authority to operate.
On the other hand, the LTFRB chief admitted that delays in securing provisional authority may have contributed to the issue. He said this process is now being done online.
“Siguro sa katagalan ng pag-proseso ng isang provisional authority, eh nauuna muna yung onboarding kasi kailangan na magbayad ng amortization sa bangko eh,” he said.
[Translation: The long processing time for provisional authority may be causing operators to onboard vehicles ahead of approval, especially as they need to keep up with bank amortization payments.]
He also clarified that while sanctions are being enforced, the agency is mindful of protecting drivers’ livelihoods and is consulting with the TNVS community.
“Ayaw natin silang mawalan ng trabaho at the same time part of the process is to consult with them, ‘yung mga TNVS community,” Mendoza said.
[Translation: We don’t want them to lose their jobs, and at the same time, part of the process is to consult with the TNVS community.]
