The "vague and inconsistent" implementation of the agreement on the No Contact Apprehension Policy (NCAP) for traffic violations is disadvantageous to the Quezon City (QC) government, the Commission on Audit (COA) disclosed in its 2022 audit report.
COA questioned several provisions in the Jan. 28, 2021 Joint Venture Agreement (JVA) between the QC government and the QPAX Traffic Systems Incorporated (QPAX).
It said the JVA was contracted to help alleviate traffic congestion, reduce vehicular incidences, and improve road safety and general traffic conditions within QC through the implementation of new measures and technologies.
However, COA said its audit team had noticed some provisions that gave the QC government the short end of the agreement.
The contract stated that QPAX is obligated to install and operate NCAP in at least 15 designated approaches with a total upfront capital expenditure of P49,500,000, which is the sole responsibility of QPAX. But the COA said there is no document showing whether the agreed capital expenditure obligation or share of QPAX has been met.
It said the audit team also questioned the handling of funds generated by NCAP. Section 9.4 of the JVA required both the QC government and QPAX to open a joint account "with a reputable universal or commercial bank" which will be administered by the QPAX Project Manager.
However, the COA said that the agreement placed the QC government at risk. "The QPAX Project Manager is the administrator of the account and the authorized personnel to transfer the QPAX and city shares in their respective bank accounts, which could be disadvantageous on the part of the city having no control over the joint bank account," it said.
Also, COA said the JVA holds the QC government liable to pay penalties whenever there are delays in the remittance of fines with P25,000 agreed upon for every instance of default.
"The penalty imposed against the city on every instance that the city incurs delays in the scheduled remittance of revenues collected to the designated JVA is disadvantageous on the part of the city," it noted.
At the same time, COA said that the fines and penalties imposed by the NCAP compared to the rates of the Land Transportation Office (LTO) are "onerous."
Citing an example, COA said that the QC fees for disobedience to traffic control signals and signs are different. The LTO imposed a fine of P1,000, but the first offense in QC is already at P2,000, then P3,000 for the second offense, and P4,000 for the third offense.
The fine for unclean or unsanitary vehicles is P500 for QC and P300 for LTO, and taxis found without meters or uncalibrated or tampered taximeter seal are charged P1,750 by the QC government as opposed to P1,000 by the LTO, it said.
With its findings, COA has urged the QC government to re-evaluate certain provisions of the JVA that are disadvantageous on the part of the city and to pursue the creation of an ordinance to "harmonize" the rates for penalties and charges sanctioned by the NCAP with the rates imposed by the LTO to promote uniformity of sanction with that of the national government.
It said the QC government has already taken steps to align its fines with the LTO and created Ordinance No. SP3172, series of 2023, revising the Traffic Management Code of the City.