DOTr approves stiffer penalties for erring car dealers, importers

The Department of Transportation (DOTr) has given the thumbs up to the Land Transportation Office’s (LTO) recommendation to impose stiffer sanctions against car dealers and importers engaging in fraudulent activities, especially in registering motor vehicles.

In a statement on Friday, LTO chief Vigor Mendoza said Transportation Secretary Jaime Bautista approved the amendment of the agency’s policy to charge higher penalties against erring manufacturers, assemblers, importers, rebuilders, dealers and other entities (MAIRDOE) that are authorized to import motor vehicles and its components. 

Mendoza said, under the amended stricter rules, higher penalties will now be imposed on the commission of fraud and misrepresentation in the filing of the application and its operations, including stock and sales reporting; and the submission of fraudulent, fake, or falsified stock/sales periodic reports as required by law, rules, and regulations. 

For first offense, the penalties are the Suspension of Certificate of Accreditation of not more than six months and a fine in the amount of P500,000, and cancellation of the Certificate of Stock Reported (CSR), sales report and registration of the vehicle/s. 

For second offense, the penalties are cancellation of Certificate of Accreditation and blacklisting for a period of one year from finality of order of cancellation, and cancellation of the Certificate of Stock Reported (CSR), sales report and registration of the vehicle/s. 

Mendoza said the period of suspension will start only upon finality of the order and decision and payment of the fine imposed and during the period of suspension, adding that the user log-in of the MAIRDOE shall be deactivated. 

“The LTO reserves the right to institute criminal actions against the concerned person or entities who committed the above serious offenses,” said the LTO chief.

The mentioned two offenses are classified as “serious,” according to Mendoza, thus the penalty also includes the 90-day preventive suspension which will start after the receipt of the Show Cause Order that will be issued by the LTO. 

Classified as less serious offenses include failure to comply with the standard requirements and other laws and their implementing rules and regulations relating to the (MAIRDOE) business operations; and allowing the use of its accreditation by non-accredited persons or entities.

The penalty for first offense is P100,000 and P500,000 for second offense.

For third offense, the fine would reach P1 million. 

For fourth offense, the penalty is cancellation of Certificate of Accreditation and blacklisting for a period of one year from finality of order of cancellation. 

Mendoza said the stricter penalties would compel MAIRDOE to strictly observe the rules and regulations, saying this would correct the policy before wherein erring MAIRDOE can still transact with the LTO. 

The LTO chief cited the case of the fraudulent transactions involving the two Bugatti Chiron which served as an eye-opener to review the existing policy and eventually correct it since it was found out that the penalties are too low. 

“On behalf of the men and women of the LTO, I express my deepest gratitude to Secretary Bautista for his continuous support in our reform programs aimed at further improving the services to our clients under President Ferdinand ‘Bongbong’ Marcos Jr.’s Bagong Pilipinas,” said Mendoza.—AOL, GMA Integrated News