LTFRB’s Lizada cites technicality in dissenting opinion on P10-M fine vs. Grab

Grab Philippines had the authority to impose a P2 per minute travel charge based on a department order allowing transport network companies (TNCs) to set their own fare structure, according to an official who dissented from a decision this week ordering Grab to pay a P10-million fine.

Land Transportation Franchising and Regulatory Board (LTFRB) Member Aileen Lizada cited technicalities in her dissenting opinion when the board ordered Grab to pay P10 million in penalties for overcharging passengers.

On Tuesday, the LTFRB approved the decision ordering Grab to pay P10 million in penalties for charging passengers P2 per minute from June 5, 2017 to April 10, 2018.

The P2 per minute travel charge was suspended last April after PBA party-list Representative Jericho Nograles claimed it was part of the TNC’s “hidden charges.”

When Grab imposed the P2 per minute charge, TNCs still had the authority to set their own fares.

“The authority given to transport network companies to formulate their fare structure can be clearly seen from Department Order No. 2015-011 of the Department of Transportation and Communication (DOTC),” she said.

Under the order of then-Department of Transportation and Communications—now the Department of Transportation DOTr —fares could be “set by TNC, subject to oversight from the LTFRB in cases of abnormal disruptions of the market ...”

“Facts would show that the basis of the respondent in prescribing the per minute charge was Department Order No. 2015-011. Additionally, the assailed P2.00 per minute charge was communicated to the Board, through the Office of the Chairman,” Lizada noted in her opinion.

“Emphasis is made that the P2.00 per minute charge was set when Department Order No. 2015-011 was not yet amended,” she said.

The Department Order was amended in June 2018, giving LTFRB the authority to regulate, supervise, and determine the fare rates of TNCs.

“Simply stated, penalties should be imposed upon effectivity of the regulatory policy ... In view of the above, I respectfully dissent from the majority opinion,” Lizada said. —VDS, GMA News