The Market Monitor Minding the Nation's Business
Transport network companies (TNCs) were warned to stop accrediting drivers in excess of government-imposed limits, following its discovery during recent distribution of cash aid by the Department of Social Welfare and Development (DSWD).
Department of Transportation (DOTr) Secretary Giovanni Lopez issued the warning after DSWD was overwhelmed by the number of unauthorized claimants.
The Land Transportation Franchising and Regulatory Board (LTFRB) had set a cap of 78,000 drivers but the number of claimants reached 185,000 for four-wheel vehicles and 293,000 for motorcycle taxis.
Sec. Lopez said “TNCs should really be held accountable here… the accountability is not just within the ranks of TNCs. There should also be accountability among the LTFRB or DOTr, whether present or former officials, because they let it happen.”
DSWD Secretary Rex Gatchalian said the agency’s payout centers faced chaos because ride-hailing platforms accredited more drivers than they were authorized to operate.
He said that TNCs initially screened and submitted only 20,000 to 30,000 names before the numbers ballooned.
“They were onboarding more than what they are authorized. They were really just loading loads and that’s what caused the problem,” Gatchalian said.
Despite the regulatory violation, Pres. Ferdinand Marcos Jr. ordered agencies to extend aid even to those operating without full permits, classifying them as individuals in crisis situations.