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 a 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 inflated number of Transport Network Vehicle Service (TNVS) beneficiaries.
LTFRB chairman Vigor D. Mendoza II said they summoned the TNCs to explain why they allowed the onboarding of TNVS partners in their apps without proper clearance from the agency, as revealed by the list they submitted based on their online platforms.
The fuel subsidy program appeared to expose that the number of operating TNVS units is higher than what was listed in the LTFRB database.
This discrepancy emerged when the list submitted for fuel subsidy distribution was compared with LTFRB records.
“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?” Mendoza said.
“This is just one of the questions we want clarified as we dig deeper into this discrepancy,” he added.
In the show cause order, the LTFRB mandated the TNCs to explain in notarized writing why their authority to operate should not be suspended or revoked over the following offenses:
- Onboarding vehicles in their applications that do not have authority or permission from the LTFRB to operate as TNVS units.
- Failure to maintain the original units onboarded in their platforms, which have since operated primarily on another platform or ceased to operate, resulting in abandonment of service to the riding public.
“You are directed to submit the list of your drivers as submitted to the DSWD, and equally important, the plate numbers of the vehicles they operate,” the order read.
The hearing was set for May 14, with the LTFRB requiring the presence of the heads or representatives of the TNCs.
Mendoza vowed to expedite the investigation and impose penalties on those found liable. (Aaron Recuenco)
