LTFRB has legal power to revoke franchises of non-consolidated PUVs — Guadiz

The Land Transportation, Franchising and Regulatory Board (LTFRB) has the authority to grant and revoke franchises to operate public utility vehicles (PUVs), LTFRB chairperson Teofilo Guadiz III said Tuesday.

Guadiz was responding to Senate President Francis Escudero, who earlier said that the authority of granting franchises is with Congress, unless it is delegated by the legislators to the LTFRB.

Escudero stressed the LTFRB should not hold the granting of the franchise to operate hostage by requiring PUVs to consolidate under one entity or cooperative for the said entity or cooperative to be granted the said franchise.

The requirement to consolidate is one of the provisions under the Public Transport Modernization Program that mandates PUVs drivers and operators to have vehicles equipped with Euro-4 engines to ensure road safety and worthiness.

“Pursuant to the Revised Public Service Act (PSA) and its Implementing Rules and Regulations (IRR), the relevant administrative agency, in this case the Department of Transportation/LTFRB, has jurisdiction and supervision over all public services, including public utilities, and their franchises, equipment, and other properties,” Guadiz told GMA News Online in a text message.

“All public services, including those classified as public utilities, will continue to be regulated and supervised by the relevant administrative agencies under existing laws,” Guadiz added.

Guadiz also said the PSA also states that “any franchise or certificate necessary for the operation of a public service will be granted by Congress, unless otherwise previously delegated by law to the relevant administrative agencies” and that “nothing in the PSA will be interpreted as a requirement for legislative franchise where the law does not require any.”

According to the LTFRB chief, Executive Order 202 also provides that the LTFRB has the power to issue, amend, revise, suspend or cancel Certificates of Public Convenience or permits authorizing the operation of public land transportation services provided by motorized vehicles, as well as to prescribe the appropriate terms and conditions.

Article 12, Section 11 of the Constitution states that ”no franchise, certificate, or any other form of authorization for the operation of a public utility will be granted except to citizens of the Philippines or to corporations or associations organized under the laws of the Philippines, at least sixty per centum of whose capital is owned by such citizens; nor will such franchise, certificate, or authorization be exclusive in character or for a longer period than fifty years.”

The same provision adds, “neither will any such franchise or right be granted except under the condition that it shall be subject to amendment, alteration, or repeal by the Congress when the common good so requires.”

Escudero said on Monday that he would meet with the officials of the Transportation department, LTFRB and Cooperative Development Authority to discuss the issues raised before him by the transport groups and find a middle ground going forward. —RF, GMA Integrated News