P1.8-B fuel subsidy for PUV drivers remains undistributed by DoTR, LTFRB: CoA

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 yearend of 2023, the latest Commission on Audit (CoA) report showed. 

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 motortaxis, tricycles, delivery riders, and franchise holders, amid the persistent fuel price hike. 

Audit findings, however, disclosed 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.

The government earmarked P3 billion for FSP in 2023 with a target beneficiaries of 1.4 million. Operators of PUV modern units were alloted the biggest chunk of the subsidy rate with P10,000, while P6,500 to those with traditional units. Motortaxis 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. 

While other operators did not receive their subsidies, state auditors said the DoTr had P3.1 million overpayment to beneficiaries in 2022 with P2.9 billion remain uncollected as of last year. 

“During CY 2023, the LTFRB (Land Transportation Franchising and Regulatory Board) was able to collect a total amount of P286,000.00, leaving an uncollected overpayment of P2,860,000.00 as at December 31, 2023,” the audit report reads.

DoTr attributed the lapses to "duplicate submission” of the authority to debit account that were both processed by the bank. The LTFRB, which is under the DoTR tasked to oversee the subsidy program, meanwhile, informed the auditing body that they already sent demand letters to identified beneficiaries with overpayments. 

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

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

“As [of] March 6, 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.