THE Land Transportation Franchising and Regulatory Board (LTFRB) said the lifting of a ban on transferring Certificates of Public Convenience (CPCs) is expected to facilitate the distribution of public utility vehicle (PUV) fuel subsidies.
It said the ban, in force since 2016 to quash an emerging black market in CPCs, has hindered the registration of PUV workers for government fuel subsidies, and has also made registering for the PUV Modernization program more difficult.
In a statement on Thursday, the LTFRB said it lifted the “prohibition on the acceptance of applications for sale and transfer, whether voluntary or involuntary, of CPC,” via a memorandum circular that took effect on Monday.
Fuel subsidies came into force during the pandemic when PUV drivers could not ply their routes. They are also resorted to in lieu of fare hikes, which government economic managers consider inflationary.
CPCs are granted to a utility for the operation of land transportation services for public use.
Transport groups such as the Nagkakaisang Samahan ng mga Nangangasiwa ng Panlalawigang Bus sa Pilipinas, Inc. had requested a review of the 2016 ban.
The 2016 memo was designed to address trading of CPCs which the agency said was more profitable than operating the franchise itself.
The new memo retains safeguards against such transfers. Only two transfers are allowed but may not take place within a year of the grant and a year prior to expiration.
It said CPCs subject to transfer must “cover all authorized units under the subject CPC, and no fractional transfer of CPC shall be allowed.”
According to the LTFRB, the resulting ease of PUV registration will improve access to the fuel subsidies and the PUV Modernization program.
Fuel subsidies have been denied to PUV owners that fail to transfer and register vehicles in their name while the transfer ban was in force.
“The LTFRB is very mindful of the situation, and that is why we took careful consideration in the issuance of this circular. We need to strike a balance between allowing a legitimate CPC transfer and at the same time deter any form of abuse,” LTFRB Chairman Teofilo E. Guadiz III said.
The expanded ability to release subsidies is expected to help the government address underspending concerns, which have been blamed for slowing economic growth. — Sheldeen Joy Talavera