CoA flags DoTr over public drivers’ fuel subsidy

CoA flags DoTr over public drivers’ fuel subsidy | Daily Tribune

The Commission on Audit (CoA) on Thursday disclosed that at least P1.8 billion worth of fuel subsidy to public drivers has not yet been distributed by the Department of Transportation (DoTR) as of the end of 2023.

In its latest report, state auditors said that the sum was part of the P6.5 billion allocated by the government since 2021 to the DoTR’s Fuel Subsidy Program (FSP), which aimed to provide relief for drivers of public utility jeepneys and vehicles, taxis and motor taxis, tricycles, delivery riders, and franchise holders amid the persistent fuel price hike.

Audit findings revealed that 27.64 percent of the total fund allocation, or P1,796,515,818.11, was not put to use while P161,469,482.52 or 3.43 percent of the total obligations totaling P4,703,484,181.89 remained unpaid or undisbursed.

To recall, the government earmarked P3 billion for FSP in 2023 with a target of 1.4 million beneficiaries. Operators of PUV modern units were allotted the biggest chunk of the subsidy rate at P10,000, while P6,500 was allocated to those with traditional units. Motor taxis and delivery riders were both set aside P1,200 and P1,000 for tricycle drivers.

Of the target beneficiaries, the DoTR only served 281,211 -- four times lower than the objective actual rate and while other operators did not receive their subsidies, state auditors said the DoTR had a P3.1 million overpayment to beneficiaries in 2022 with P2.9 billion remaining uncollected as of last year.

“During CY 2023, the LTFRB (Land Transportation Franchising and Regulatory Board) was able to collect a total amount of P286,000, leaving an uncollected overpayment of P2,860,000 as of December 31, 2023,” the audit report said.

Meantime, the DoTR attributed the lapses to “duplicate submission” of the authority to debit accounts that were both processed by the bank.

The LTFRB — which is under the DoTR and tasked to oversee the subsidy program — informed the auditing body that they had already sent demand letters to identified beneficiaries with overpayments.

But CoA ordered DoTR to send another follow-up letter with unrefunded overpayments to ensure their collection and avoid the issuance of a notice of disallowance by the auditing unit.

As for FSP in 2023, the financial management division told CoA that the P1.8 billion was to be used for the expenses relative to the operations and implementation of the program this current year.

“As of 6 March 2024, 466,684 beneficiaries received the subsidy out of the 1,360,000 target beneficiaries with a total disbursement of P1,583,244,070.06, with P1,570,236,200.00 for the subsidy and P13,007,870.06 for the administrative cost,” the DoTR said.