Fuel subsidy exposes discrepancy in list of allowed TNVS; 21 ride-hailing firms summoned
photo: LTFRB
At least 21 Transport Network Companies (TNCs) are now under investigation over the bloated number of fuel subsidy beneficiaries in the ride-hailing service sector, the Land Transportation Franchising and Regulatory Board (LTFRB) said.
The issuance of show cause order came after Department of Transportation (DOTr) Secretary Giovanni Z. Lopez disclosed that the fuel subsidy distribution is facing challenges due to the bloated number of Transport Network Vehicle Service (TNVS) beneficiaries.
LTFRB chairman Vigor D, Mendoza II said they summoned the TNCs to ask them to explain why they allowed the boarding of TNVS partners in their apps without proper clearance from the agency as revealed by the list they submitted based on their online platform.
The fuel subsidy program appeared to have exposed that the number of operating TNVS is more than what was listed in the LTFRB. And this was due to the list submitted for fuel subsidy distribution that was compared to the LTFRB database.
“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 to comply with the LTFRB order,” said Mendoza.
“This is just a few of the questions that we want to be cleared about as we dig deeper into this discrepancy,” he added.
In the SCO, the LTFRB mandated them to explain in notarized writing why their authority to operate as TNCs should not be suspended or revoked over discrepancies for the following offenses:
1.Onboarding vehicles in the application that do not have authority or permission from the Land Transportation Franchising and Regulatory Board (LTFRB) to operate as Transport Network Vehicle Service (TNVS) units;
2. Failure to maintain the original units onboarded in their respective platforms, which have since operated, for the majority of the time, on another platform or have ceased to operate, in either case resulting in the abandonment of your service to the riding public.
“You are directed to submit the list of your drivers as submitted to DSWD, and equally important, the plate number of the vehicle they operate,” the SCO read.
The hearing was set on May 14 and the LTFRB mandated the presence of the heads or representatives of the TNCs.
Mendoza expedite the investigation and impose punishment to those which would be found liable.