THE Land Transportation Franchising and Regulatory Board (LTFRB) had summoned 21 transport network companies (TNCs) as part of an ongoing investigation into what it described as an inflated number of fuel subsidy beneficiaries in the ride-hailing sector.
The agency issued show-cause orders (SCOs) requiring the firms to explain discrepancies in the reported number of transport network vehicle service (TNVS) beneficiaries.
LTFRB Chairman Vigor Mendoza II said the agency wants to determine whether the irregularities stemmed from deliberate actions or lapses in compliance.
“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 LTFRB orders,” Mendoza said.
The issue arose following a verification process by LTFRB personnel, along with other government agencies, which found that the number of TNVS beneficiaries was “irregularly high.”
The LTFRB directed the companies to justify why their authority to operate should not be suspended or revoked.
The violations ranged from onboarding vehicles without proper authorization to failing to maintain originally accredited units, some of which were found to have transferred to other platforms or ceased operations.
The agency ordered the TNCs to submit notarized explanations along with a complete list of drivers previously submitted to the Department of Social Welfare and Development, including the corresponding vehicle plate numbers.
A hearing has been set for May 14.
