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Ride-Hailing Firms Under Fire As LTFRB Probes 'Bloated' Fuel Subsidy List
FILE
Authorities have summoned more than 20 ride-hailing companies as questions mount over a suspiciously high number of fuel subsidy beneficiaries in the transport sector.
The Land Transportation Franchising and Regulatory Board on Monday confirmed it has issued show cause orders to 21 Transport Network Companies (TNCs), directing them to explain discrepancies tied to their reported number of Transport Network Vehicle Service (TNVS) beneficiaries.
The move comes under the guidance of the Department of Transportation, led by Secretary Giovanni “Banoy” Lopez, as regulators dig deeper into what may be either a deliberate inflation of figures or serious compliance failures.
LTFRB Chairman Vigor Mendoza II said the probe aims to uncover the truth behind the irregularities flagged during verification of subsidy recipients.
Officials discovered that the number of TNVS drivers listed as fuel subsidy beneficiaries appeared unusually high, raising red flags within both the LTFRB and other government agencies involved in the validation process.
“We want to determine if this was intentional or simply negligence,” Mendoza said, noting that the investigation will examine whether companies failed to follow proper onboarding and reporting rules.
Among the violations cited in the show cause orders are the onboarding of vehicles without proper LTFRB authorization and the failure to maintain active units on their platforms. Regulators also pointed out cases where listed vehicles had either stopped operating or shifted to other platforms, effectively abandoning service to passengers.
The LTFRB has ordered the companies to submit notarized explanations, along with detailed lists of their drivers and corresponding vehicle plate numbers previously submitted to the Department of Social Welfare and Development.
A formal hearing has been scheduled for May 14, where company executives or authorized representatives are required to appear.
Mendoza said the agency is moving swiftly to resolve the issue and warned that penalties—including possible suspension or revocation of operating authority—await those found responsible.
The investigation is expected to have significant implications for the ride-hailing industry, particularly as the government tightens oversight on subsidy distribution and regulatory compliance.
The Land Transportation Franchising and Regulatory Board on Monday confirmed it has issued show cause orders to 21 Transport Network Companies (TNCs), directing them to explain discrepancies tied to their reported number of Transport Network Vehicle Service (TNVS) beneficiaries.
The move comes under the guidance of the Department of Transportation, led by Secretary Giovanni “Banoy” Lopez, as regulators dig deeper into what may be either a deliberate inflation of figures or serious compliance failures.
LTFRB Chairman Vigor Mendoza II said the probe aims to uncover the truth behind the irregularities flagged during verification of subsidy recipients.
Officials discovered that the number of TNVS drivers listed as fuel subsidy beneficiaries appeared unusually high, raising red flags within both the LTFRB and other government agencies involved in the validation process.
“We want to determine if this was intentional or simply negligence,” Mendoza said, noting that the investigation will examine whether companies failed to follow proper onboarding and reporting rules.
Among the violations cited in the show cause orders are the onboarding of vehicles without proper LTFRB authorization and the failure to maintain active units on their platforms. Regulators also pointed out cases where listed vehicles had either stopped operating or shifted to other platforms, effectively abandoning service to passengers.
The LTFRB has ordered the companies to submit notarized explanations, along with detailed lists of their drivers and corresponding vehicle plate numbers previously submitted to the Department of Social Welfare and Development.
A formal hearing has been scheduled for May 14, where company executives or authorized representatives are required to appear.
Mendoza said the agency is moving swiftly to resolve the issue and warned that penalties—including possible suspension or revocation of operating authority—await those found responsible.
The investigation is expected to have significant implications for the ride-hailing industry, particularly as the government tightens oversight on subsidy distribution and regulatory compliance.
May 4, 2026
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