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Business

Franchise on corruption

SPYBITS - The Philippine Star

Corrupt officials as well as rank-and-file employees of the Land Transportation Franchising and Regulatory Board (LTFRB) should be charged, not simply dismissed or transferred to Mindanao. In the first place, it’s unfair to the people of Mindanao to become the receptacle of scumbags who have been making hay to the tune of hundreds of millions in the past years through their illegal activities at the LTFRB.

A nationwide audit conducted by LTFRB chief Martin Delgra and a few trusted men revealed the shocking extent of corruption that has been happening not only in NCR, but also in many regional offices, with crooked officials selling franchises for as much as P500,000 — when in fact, there is no such thing as a franchise fee, only a processing fee in the amount of P520, Delgra said.

Apparently, these scalawags maintain a “ghost” database containing information about expired, revoked and inactive franchises which they can give to an interested operator for the right price, especially if the applicant is in a hurry.

Insiders also disclosed the illegal practices of some unscrupulous operators in connivance with corrupt LTFRB officials who have found ingenious ways to get around the moratorium issued in 2003 on giving out new franchises.

Aside from the resurrection of dead franchises, there is the “wholesale” issuance of franchises to just one operator who will then lease or sell these to other operators for a premium amount. One other practice is the so-called “kambal plaka” where only one franchise is used for two different units that have the same license plate, done in connivance with corrupt employees. Recent reports also indicate the involvement of LTFRB officials in the proliferation of “colorum” public utility vehicles — or those operating without a franchise.

A regional official who retired in 2013 is also accused of issuing fake franchises — leaving the operators in a quandary since they only found out about it when they applied for a renewal and discovered the agency does not have records of their franchises. In several cities in the provinces, taxi drivers have also been complaining about the issuance of new franchises despite the fact there are already more than enough taxicab units plying the city — adding to the traffic congestion, not to mention diminished income for the taxi drivers.

According to Delgra, a lifestyle check will also be conducted among LTFRB officials and employees as additional measures to rid the agency of corruption. Much earlier, the President tagged the LTO and the LTFRB as two of the most corrupt agencies in government, warning them that drastic action would be taken if they continue with their illegal activities that end up victimizing the poor. “Do not victimize ordinary people because they are in most need of government,” he said in the vernacular.

Trump’s tweets reveal his temperament 

The seizure of an underwater US Navy drone (or glider) by a Chinese Navy lifeboat has prompted the US to lodge a formal diplomatic protest demanding for the device to be given back, saying it was being operated by civilian contractors for the purpose of conducting oceanic research in internationals waters at the South China Sea. China responded by saying it will return the device through appropriate means, scoring the US for “hyping” the incident before the public and saying the Chinese “adopted a professional and responsible attitude in investigating and verifying the device,” to make sure it did not pose a danger to the safe navigation of passing ships and personnel.

The “hyping” comment was probably because Donald Trump tweeted that “China steals United States Navy research drone in international waters, rips it out of water and takes it to China in unprecedented act.”

Following China’s statement that it would return the device, Trump promptly tweeted again, saying, “We don’t want the drone they stole back. They can keep it.”

The US president-elect’s active use of Twitter has enabled him to connect with his over 17 million followers who like the billionaire-turned-politician’s direct and (oftentimes) combative tone. Observers say his tweets give a very good indication of his personality — which shows he is a man who says what he wants and does what he wants without worrying about being politically correct.

With this kind of straightforwardness, it will not be surprising if President Duterte and Donald Trump will get along better than people expect. Both of them seem to be straight shooters who prefer one-on-one engagements to thresh out an issue instead of relying on international institutions to sort it out for them. For sure, the whole world will be watching how these two leaders will interact with each other.

MNTC’s arbitration case

Businessmen are closely watching how the arbitration case filed by the Manila North Tollways Corp. (MNTC) will pan out, seeking claims in billions of losses due to the delay in the implementation of periodic rate adjustments in operating and maintaining the 84-km North Luzon Expressway as stipulated in the contract with government through the Toll Regulatory Board. Aside from MNTC, the Cavitex Infrastructure Corp. that operates the 14-km Cavite Expressway (Cavitex) has also filed a similar arbitration case.

Observers say the adjustments are necessary in continuing the upkeep and maintenance of the roads that provide seamless travel to motorists through world-class expressways.

MNTC president and chief executive Rodrigo Franco has already indicated his willingness to conduct an out-of-court settlement on the arbitration case involving the firm’s compensation claim — so the ball is clearly in the government’s court.

Unfortunately, former Transportation undersecretary Noel Kintanar, who had committed to fast-track the resolution of these arbitration cases has since resigned.  His replacement, or perhaps Transportation Secretary Art Tugade himself, should take the lead in resolving the arbitration cases at the soonest. 

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Email: [email protected]

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