LTFRB eyes lifting of franchise moratorium within the year

DAVAO CITY — The Land Transportation Franchising and Regulatory Board (LTFRB) is looking at the possible lifting of the moratorium on the issuance of franchises for public utility vehicles (PUVs) within the year to respond to the growing need for public transportation around the country, according to LTFRB Chair Martin B. Delgra III.

“There is a clear need to lift the moratorium, especially in major cities in the country so we will look into that,” Mr. Delgra said in an interview with the media Saturday.

LTFRB Memorandum Circular No. 2003-028, signed Nov. 17, 2003, mandated the “Nationwide moratorium on the acceptance of new applications and petitions for the issuance of a certificate of public convenience except trucks-for-hire service.”

Mr. Delgra said the moratorium has been in effect for more than 10 years now and needs reconsideration given population and economic growth.

However, the moratorium could be lifted only after the LTFRB has addressed the alleged widespread corruption in the agency’s field offices.

Mr. Delgra was in town as part of the LTFRB’s ongoing audit of all LTFRB regional offices following President Rodrigo R. Duterte’s order to get rid of corruption in government regulatory offices, specifically naming the LTFRB and the Land Transportation Office.

Mr. Delgra said so far, it seems that the corruption issues hurled against the agency are related to the issuance of franchises. He also said he had heard of reports and complaints from PUV operators about illegal “franchise fees” amounting to as high as P300,000.

Mr. Delgra pointed out that there is no payment for the franchise itself of a public utility vehicle as it is a “privilege granted by the government, but in exchange the franchise holder is responsible to take care of the lives, limb and welfare of the riding public.” —