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Manila Bulletin devider Philippines devider National devider Only 1% of service contracting budget spent by LTFRB; Senate inquiry coming

Only 1% of service contracting budget spent by LTFRB; Senate inquiry coming

Published Aug 20, 2021 11:28 am

Another senator has pushed to grill the Land Transportation Franchising and Regulatory Board (LTFRB) after state auditors found that the agency used only one percent of its allocation for its service contracting program.

Senator Francis 'Kiko' Pangilinan (Senate of the Philippines)

Senator Francis "Kiko" Pangilinan on Thursday, August 19, filed a resolution which calls for an investigation into the implementation of the LTFRB's service contracting program for displaced transport workers.

The Commission on Audit (COA), in its 2020 reports, had flagged the delays in its rollout and the low utilizaton of P5.58-billion budget for the program.

The COA said that of the amount, only some P59.7 million, or 1.07 percent, was used.

"The sluggish implementation of the program delayed the benefits intended for PUV (public utility vehicle) driver and operators who are among the sectors severely affected by the pandemic," Pangilinan said in the unnumbered resolution.

"Thousands more could have benefitted from the more than P4 billion unutilized now returned to the national treasury," he lamented.

Earlier, Senator Grace Poe, chairperson of the Senate Committee on Public Services, filed a similar resolution to look into the COA's audit report.

Included the Bayanihan to Recover as One Act, or Bayanihan 2, the service contracting program was intended to provide a temporary livelihood for PUV drivers and operators displaced by the restrictions in movement due to the COVID-19 pandemic.

The law expired last June 30, mandating agencies to return unobligated appropriations to the national treasury.

The LTFRB clarified that it "immediately implemented" the program after the funds were downloaded to the agency in November, 2020.

The memorandum of agreement (MOA) between the transport agency and the Landbank of the Philippines (LBP), to distribute the payouts to eligible beneficiaries, was signed only in December.

LTFRB chairman Martin Delgra said that they have released P1.5 billion of the P5.58-billion budget for the program “Nasa emergency mode tayo at kailangan mabilis kumilos. Hindi ito katanggap-tanggap habang may mga jeepney drivers pa ring hikahos at walang mapantustos sa pamilya (We are in an emergency mode so we have to act fast. This is not acceptable while many jeepney drivers are still struggling and do not have the money to provide for their families),” Pangilinan said.

"Kailangang magpaliwanag ng LTFRB sa kapabayaang ito (The LTFRB must explain this negligence)," he added.

Related Tags

underspending Kiko Pangilinan pandemic response PUV drivers Francis Pangilinan LTFRB Service Contracting Program
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