Due to franchise selling
The regional office of the Land Transportation and Franchising Board in the Cordillera Administrative Region has been making a killing in the illegal collection of franchise fees, with franchise applicants being charged as high as P200,000 for each unit.
This was revealed by lawyer Martin Delgra, LTFRB chairperson, to reporters in Davao City this week where he revealed that corruption has been abetted by agency officials, including retired regional LTFRB personnel.
He said that in the other regions, the illegal collection of franchise fees averaged from P14,000 to P100,000 each with the CAR registering the highest rate.
He said franchises are supposed to be handed out by the LTFRB for free to deserving applicants, charging them only the amount of P520 as administrative cost.
“Franchising has no price and the receipts handed out were meant to cover administrative not franchise cost,” he added.
He said that in Regions 1 and 3, retired LTRFB officials are in cahoots with fixers in the acquisition of franchises for vehicular owners.
The rampant corruption in the LTFRB offices was confirmed by Communications Secretary Martin Andanar who added that heads will definitely roll in the regional offices of the LTFRB.
A Benguet-based bus operator confirmed this LTFRB practice, saying that three years ago he was being asked to shell out P200,000 each for the newly-purchased bus units that were meant to upgrade his company’s ageing bus fleet.
The exorbitant fees collected illegally are also being blamed as the reason why bus companies have been unable to modernize their units.
Delgra, who comes from Davao City, said cases will be filed against erring LTFRB personnel in the regional offices.
At the same time, Delgra said his office has been conducting a comprehensive review of LTFRB operations to weed out corruption and to make it more effective in providing services to agency partners.
He described franchise holders as the agency’s partners with their passengers as stakeholders. **Jimmy K. Laking in Davao City
