LTFRB revokes franchises of two bus companies involved in EDSA accident

The Land Transportation Franchising and Regulatory Board (LTFRB) has permanently revoked the franchises of Elena Liner and MGP Trans for the fatal accident along Epifanio delos Santos Avenue (EDSA) in Makati City last year that claimed the lives of seven people and injured more than 30 others.

 

In a 12-page decision the LTFRB issued Friday, the board denied the motions for reconsideration filed by both bus firms to lift the preventive suspension order (PSO) issued against them by LTFRB on November 15, 2013, a day after the incident. The board also denied both firms' motions not to revoke their Certificate of Public Convenience (CPCs) for failing to comply with LTFRB rules and regulations.

 

“While we recognized the financial effect on the part of the employees of the two bus companies, the rule of law must prevail above all; the safety of the riding public is the paramount and primordial consideration of the Board,” the LTFRB said in its decision.

 

With the cancellation of their CPCs, the LTFRB ordered the 21 buses units of Elena Liner and 18 buses of MGP Trans “to cease and desist” from operating.

 

“The yellow plates of these units will be confiscated by the Board, and will be destructed and destroyed prior to their return to the Land Transportation Office (LTO),” the LTFRB said.

 

The regulator said they came up with the decision after taking into consideration five key legal issues.

 

First, on the argument of Elena Liner and MGP Trans that the issuance of PSO prior to the start of the hearing of the case is a legal violation, the LTFRB said in its decision, “... the Board, pursuant to Section 16 of The Public Service Law, has the power to issue PSO prior to the hearing and as a precautionary measure to avoid recurrence of the same accident and protect the riding public.”

 

Second, the LTFRB argued that while Elena Liner provided medical and financial assistance to the victims, it was not enough basis to absolve the bus firm from the lapses it committed before and during the incident.

 

“In this regard, it is clear that Elena Liner failed to observe extra diligence during its operation by allowing their bus unit (TXT-191) to operate without checking first its roadworthiness before dispatching it, hence its involvement in the accident due to loss of brake,” the decision read.

 

Third, on the argument of both firms that there must first be a conviction of the driver for recklessness before LTFRB can order them to prove that they exercise due diligence in operation, the LTFRB said it can exercise its power anytime to determine whether a franchise holder is still abiding with the LTFRB rules.

 

Fourth, the LTFRB pointed out that aside from the drivers, the operators can also be at fault for the poor maintenance of the buses that were under investigation.

 

The LTFRB said lapses on the part of the operators is a ground for the board not only to conduct hearings and investigations but also to impose penalties such as suspension and cancellation of franchises.

 

Fifth, the LTFRB said that based on their investigation, they found out that Elena Liner failed to exercise extra ordinary diligence required by law, by allowing its bus unit involved in the incident to be dispatched despite mechanical defect, while MGP Trans operator can be at fault for allowing a phased out unit to be dispatched.

 

The LTFRB also found MGP Trans violating the board's Standard Classification and Guidelines for Garages as the company's garage in West Fairview lacked sufficient parking lot for its number of authorized bus units. The board also said MGP garage lacked a repair shop and equipment. – Elizabeth Marcelo/VS, GMA News