LTFRB chief faces graft for allowing Grab, Uber to operate with unfixed rates

Land Transportation and Franchising Regulatory Board (LTFRB) chairman Winston Ginez was charged with graft for allegedly allowing transportation network Grab and Uber to operate without fixed rates.

 

In his seven-page complaint filed before the Office of the Ombudsman on Monday, transport group leader Efren De Luna said Ginez and LTFRB board member Ronaldo Corpus committed graft, dereliction of duty and violation of the Administrative Code of the Philippines.

 

The complaint stemmed from Ginez and Corpus’ issuance of a series of memorandum circulars, which, according to De Luna, paved way for Transportation Network Companies (TNCs) such as Grab and Uber to operate and charge their own rates, without the required hearing and approval of LTFRB as provided under the Public Service Act.

 

One of the regulations is MC 20015-017 which set implementing guidelines on the acceptance of applications for a certificate of public convenience to operate a transportation network vehicle service.

 

The guidelines allowed for the issued of a 45-day provisional authority as a transition period for the TNC service.

 

“The two public officers charged herein knew very well or should have known that the Public Service Act mandates that the fares to be charged by public utilities under their regulatory supervision must be pre-approved by the LTFRB after compliance with notice and hearing,” De Luna said.

 

De Luna, president of the Alliance of Concerned Transport Organizations (ACTO), further cited a previous Supreme Court ruling stating that it is the mandate as well as the duty of the LTFRB to regulate fares.

 

“Despite this clear wording of the law both public officers opted to turn a blind eye and issued the above circulars which paved the way for TNCs and TNVS (Transportation Network Vehicle Service) to operate and charge commuters even astronomical amounts, taking advantage of the commuters’ precarious situation when the weather and traffic are bad,” De Luna said.

 

De Luna cited as example that on the night of September 8, amid the heavy traffic and flooding in Metro Manila, drivers of TNCs charged helpless commuters four times higher than the normal rates.

 

De Luna further said that Ginez and Corpus’ alleged unlawful issuance of the four memorandum circulars have also caused undue disadvantage to other transport operators “who are required to go thru a tedious process of notice and hearing before any fare adjustment can be made”.

 

De Luna also prayed to the Office of the Ombudsman to issue preventive suspension order against GInez and Corpus while it is investigating his complaint, to prevent them from using their position to tamper any evidence and to intimidate possible witnesses.

 

“Moreover, being top officers of the LTFRB, these two public officers have access to, and control over, the relevant and material documents relative to this case as well as over the LTFRB employees who may have personal knowledge on the case,” De Luna said.

 

GMA News Online sought a reaction from Ginez but has not yet responded as of posting time.  — ELR, GMA News