Duterte orders review of Beep card concession agreement after price hike

President Rodrigo Duterte has ordered a review of the government’s concession agreement with Beep card provider AF Payments Inc. following the 10-peso increase of the card’s issuance fee at the start of the year.

Malacañang said it wants to ensure that there are no provisions in the agreement that are unfavorable to the public, according to a Thursday report on 24 Oras by Tina Panganiban Perez.

“Lahat iyon ay pag-aaralan at rerepasuhin ng presidente. Hindi matatapos ang termino niya na hindi niya tutuklasin ang mga onerous provisions in any existing contract involving government,” Presidential Spokesperon Salvador Panelo said.

Transportation Secretary Arthur Tugade said they are also reviewing the contract.

“Lahat ng concession agreement pinaparepaso, ‘di ba't ayaw ng pangulo na mayroong mga agreement, concession agreement, o kontrata na nagsasamantala?"

"Halimbawa, 'yung rate sila lang magde-decide. 'Yung babayaraan taon-taon, ‘yung tinatawag na annual grantor’s fee, bakit kailangan magbayad gayung lupa ng gobyerno 'yun,” Tugade said.

AF Payments Inc. is a joint venture between Ayala Corporation and tycoon Manny Pangilinan’s First Pacific Group.

The Department of Transportation earlier clarified that only the issuance fee of the Beep card increased, not the fares for LRT1, LRT2, and MRT3, due to an automatic provision in the concession agreement they signed with AF Payments Inc. in 2014.

In a statement, the company said they cannot comment on the issue since they do not directly sell the Beep cards to commuters. —Julia Mari Ornedo/LDF, GMA News