Pangilinan, Poe seek Senate probe into LTFRB’s 1% utilization of P5.5-B fund for drivers

Senators Francis Pangilinan and Grace Poe have filed separate resolutions seeking a Senate inquiry into the Land Transportation Franchise and Regulatory Board’s (LTFRB) slow distribution of the P5.5-billion service contracting program for public utility vehicle (PUV) drivers flagged by the Commission on Audit (COA).

In his resolution, Pangilinan sought an investigation to scrutinize the reasons for the delay in the implementation of the program “which led to the unacceptable level of fund utilization” amid the health and economic crisis.

He said the probe is intended to address the gaps and shortcomings and ensure the effective, efficient, and timely utilization of funds for programs intended for the transport sector.

“The sluggish implementation of the program delayed the benefits intended for PUV drivers and operators who are among the sectors severely affected by the pandemic. Thousands more could have benefitted from the more than P4 billion unutilized funds now returned to the national treasury,” Pangilinan said.

In her resolution, Poe sought a “deeper probe” and “exaction of accountability” among the public officials over their “gross mismanagement of funds meant to be provided as aid.”

“Such lack of urgency in distributing aid in a time of widespread need and suffering is unconscionable and betrays a lack of compassion in the [Department of Transportation],” Poe wrote in her resolution.

The LTFRB is under the DOTr.

She cited data from the Philippine Statistics Authority (PSA) which showed that the Gross Value Added (GVA) of the land transportation sector recorded a decline or 30.1% or 123.84 million pesos at the height of the pandemic.

Poe likewise recalled that many jeepney drivers and bus conductors have been begging for loose change as their operations were suspended due to the health crisis.

Under the Bayanihan To Recover As One Act or Bayanihan 2, Poe said, the DOTR was provided with the following appropriations:

• P2.604 billion assistance for the critically-impacted business in the transportation industry.
• P5.58 billion to provide temporary livelihood to displaced workers n the industry through service contracting, regardless of the quarantine levels, of PUVs.
• P1.316 billion to develop accessible sidewalks and protected bike lanes.

The service contracting program will provide drivers an arrangement wherein the national government directly subsidizes the operations of PUVs.

Both lawmakers cited the COA report, which showed that the LTFRB only used around P59 million of the P5.58 billion funds of the agency’s Service Contracting Program.

The state auditors pointed out in the report that only over 29,800 drivers or 49.79 percent of the 60,000 targeted driver participants were registered in the program as of the end of the year.

On Wednesday, the LTFRB explained its reason for the 1% utilization, saying the actual funds for its Service Contracting Program were downloaded only to the agency in November 2020.

The memorandum of agreement (MOA) between the LTFRB and the Landbank of the Philippines was only signed in December 2020.

The Landbank governed the distribution of cash subsidies to eligible beneficiaries of different modes of public land transportation through crediting to existing Landbank accounts, other bank accounts, or e-money/wallet of GCash or PayMaya via InstaPay or PESONet. — BM, GMA News