Department of Transportation (DOTr) Secretary Jaime J. Bautista has approved the recommendation of the Land Transportation Office (LTO) to add more teeth in imposing sanctions on car dealers and importers engaged in fraudulent activities, especially in the registration of motor vehicles.

LTO Chief Assistant Secretary Atty. Vigor D. Mendoza said Secretary Bautista's approval paved the way to the amendment of an LTO Administrative Order which now carries higher penalties against erring Manufacturers, Assemblers, Importers, Rebuilders, Dealers And Other Entities (MAIRDOE) that are authorized to import motor vehicles and its components.

Under the amendment approved by Secretary Bautista, 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 the first offense on the two offenses above, the penalties are the Suspension of Certificate of Accreditation of not more than six (6) 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 the second offense, the penalties are cancellation of Certificate of Accreditation and blacklisting for a period of one (1) 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/Decision and payment of the fine imposed and during the period of suspension, 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," Mendoza said.

Since the two offenses are classified as serious, Mendoza said 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.

In the same AO amendment approved by Secretary Bautista, it classified less serious offenses that 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; the second offense is P500,000 and for third offense is P1 million.

For the fourth offense, the penalty is cancellation of Certificate of Accreditation and blacklisting for a period of one (1) year from finality of order of cancellation.

"The period of suspension shall start only upon finality of the Order/Decision and payment of the fine imposed. During the period of suspension, the user log-in of the MAIRDOE shall be deactivated," Mendoza said.

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

He 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," Mendoza said.