The Land Transportation Franchising and Regulatory Board has issued show cause orders against several public utility vehicle units for failing to grant the required additional 20 percent fare discount to passengers.

Under the Service Contracting Program, participating PUVs must provide a 20 percent discount on top of existing fare reductions for senior citizens, persons with disabilities, and students.

Following verification, the agency found that some units failed to comply with the policy, prompting immediate action.

“We have issued show cause orders to those reported to us. There are three units involved, and we have also suspended their benefits,” said LTFRB Chairman Vigor Mendoza II in an interview.

Mendoza said government payments to the concerned units under the program will remain suspended while the investigation is ongoing.

He added that if the violations are confirmed, operators may be removed from the program and could face suspension or cancellation of their franchise.

The LTFRB said PUV units that operated starting 15 April 2026 have already been paid, and all Service Contracting Program participants are expected to receive payments within three to five days.

Mendoza said the agency continues to improve the program to make it more responsive and beneficial to operators.