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Anti-Red Tape Authority Finds Irregularities with LTFRB’s Processing of TNVS Operators

Following its dialogue with the Land Transportation Franchising and Regulatory Board (LTFRB) and Transport Network Vehicle Service (TNVS) operators, the Anti-Red Tape Authority (ARTA) has determined that the former has committed seven irregularities with regards to the issuance of Provisional Authority’s (PA’s) and the granting of the Certificate of Public Convenience (CPC).

As enumerated by the agency, these are:

  1. Failure to duly implement Memorandum Circular No. 2018-005, the document which amends the common supply base of TNVS;
  2. Failure to act upon applications for the issuance/renewal of PA’s within the processing time stamped by the LTFRB itself on the application forms;
  3. Failure to conduct hearings and render decisions for an unreasonable length of time on applications for CPCs to operate TNVS, and on motions for reconsideration of dismissals thereof within the processing time provided in the LTFRB’s citizen charter;
  4. Imposition of additional requirements without due case, particularly:
    1. Bank Conformity; and
    2. Proof of Existence and Sufficiency of Garage;
  5. Imposition of undue regulatory burden and cost; specifically:
    1. Requiring applicants to personally file their application and prohibiting the designation of a representative other than the direct ascendant/descendent of the applicant;
    2. Requiring applicants to compile documentary requirements and application form specificaly in a long orange folder; and
    3. Granting PA’s with a short period of validity which constrained the applicants to undergo the same long process with the LTFRB resulting in long queues outside the LFRB office;
  6. Inconsistent, arbitrary, and and varying interpretations and implementation of the rules and regulations of TNVS applications; and
  7. Implementing abrupt changes in the requirements and procedures for TNVS application without due notice to the public.

Following  the LTFRB’s receipt of the ARTA’s Notice to Explain, the latter is giving the former three days to submit a written document that addresses the alleged irregularities. The document will also form as part of its records with the ARTA “and shall be determinative of the Authority’s next course of action.”

ARTA was created in 2018 after President Rodrigo Duterte signed Republic Act No. 11032 or the ‘Ease of Doing Business and Efficient Government Service Delivery Act.’

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