The Land Transportation Franchising and Regulatory Board (LTFRB) has launched an investigation into 21 transport network companies (TNCs) over suspected discrepancies in their reported fuel subsidy beneficiaries, raising concerns about possible irregularities in the ride-hailing sector.
In a statement released Monday, LTFRB Chairperson Vigor Mendoza II said the agency already issued show cause orders requiring the firms to explain inconsistencies uncovered during a verification process conducted by the board alongside other government agencies.
“We want to ferret out the truth in relation to this incident. Is there a deliberate attempt to increase the number of beneficiaries on their part, or is this a case of negligence and incompetence in complying with the LTFRB order?” Mendoza said in the statement.
He added that the probe seeks to clarify whether the discrepancies stem from intentional misreporting or lapses in compliance. “These are just some of the questions that we want clarified as we dig deeper into this discrepancy,” he said.
According to the LTFRB, the irregularities were discovered after cross-checking the reported number of transport network vehicle service (TNVS) drivers eligible for the government’s fuel subsidy program. The findings prompted closer scrutiny of the data submitted by ride-hailing companies.
Under the show cause orders, the concerned TNCs were directed to submit written explanations detailing why their authority to operate should not be suspended or revoked. The agency warned that failure to provide satisfactory justification could result in regulatory sanctions.
The LTFRB also cited potential violations, including the onboarding of vehicles without proper authorization and the failure to maintain active units within their platforms, both of which could affect the accuracy of subsidy distribution.
As part of the investigation, the companies were instructed to provide a list of drivers previously endorsed to the Department of Social Welfare and Development (DSWD), along with corresponding vehicle plate numbers for validation.
A formal hearing has been scheduled on May 14, where company executives or their authorized representatives are required to appear before the board.
The LTFRB emphasized that the inquiry forms part of its broader effort to ensure transparency and accountability in the implementation of government assistance programs for public transport drivers.