LTFRB probes ride-hailing firms over ‘bloated’ subsidy list

The Land Transportation Franchising and Regulatory Board has summoned at least 21 transport network companies as it investigates discrepancies in the list of fuel subsidy beneficiaries in the ride-hailing sector.

LTFRB Chair Vigor Mendoza II said the agency is looking into whether the inflated number of beneficiaries was due to deliberate action or failure to comply with regulations.

“We want to ferret out the truth in relation to this incident. Is there a deliberate attempt to increase the number of beneficiaries on their part, or is this a case of negligence and incompetence in complying with the LTFRB order?” Mendoza said.

The issue surfaced during the verification of beneficiaries, when LTFRB personnel and other government officials found an unusually high number of listed drivers under Transport Network Vehicle Service operations.

The agency issued show cause orders directing the companies to explain why their accreditation should not be suspended or revoked.

Among the possible violations cited were onboarding unauthorized vehicles as TNVS units and failure to maintain original registered units, some of which may have transferred to other platforms or stopped operating.

The companies were also ordered to submit updated driver lists, including vehicle plate numbers, consistent with data previously provided to the Department of Social Welfare and Development.

A hearing is scheduled on 14 May, with representatives of the concerned firms required to attend.

The LTFRB said it will expedite the investigation and impose sanctions on those found liable.