LTFRB 7 orders operators to explain

LTFRB 7 orders operators to explain
LTFRB 7 to program participants: You will be paid in coming weeks. (File photo)
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OVER 100 transport operators have received show cause orders (SCOs) from the Land Transportation Franchising and Regulatory Board (LTFRB) due to their failure to comply with consolidation regulations.

In an interview with SunStar Cebu on Thursday, Sept. 26, 2024, LTFRB 7 Director Eduardo Montealto Jr. said this action targets operators rather than individual drivers.

Montealto explained that while show cause orders are considered routinary, they are not to be taken lightly. Operators are given seven to 15 days to respond to the SCO.

While there are no penalties given for failing to respond to the order, failure to consolidate will result in the automatic revocation of the operator’s franchise.

Montealto said that as of Sept. 26, almost 94 percent of traditional public utility jeepneys (PUJs) have consolidated. This leaves about 120 operators still “uncoordinated.”

The consolidation of transport operators and drivers requires individual PUV operators to form cooperatives or corporations for easier processing of bank loans in acquiring modern jeepney units. It is part of government’s PUV modernization program that started in 2017.

Montealto said operators who receive an SCO must submit a formal explanation for their non-compliance and are encouraged to respond promptly to avoid further regulatory actions.

The consolidation requirement seeks to reduce the number of transport units on the roads to foster a more organized and reliable road network.

“By prioritizing compliance, we aim to uplift the quality of transport services in Cebu,” Montealto said.

The LTFRB ensures that all operators have been made aware of the need to comply with consolidation regulations and its implications as this information has been clearly outlined in the terms and conditions of their certificates of public convenience.

“We are actively working to consolidate the remaining operators and plan to publish their updated addresses and contact numbers in the newspaper,” he said. / JBB

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