Friday, July 13, 2012

Press Release from DOTC on Bus Operators


Stock photo. Source unknown.

PRESS RELEASE
July 11, 2012
Office of Secretary Manuel A. Roxas


BUS OPERATORS GROUP SUPPORTS DOTC’S DECISION TO SUSPEND REVIVAL OF PANTRANCO FRANCHISES


Manila, Philippines – Leaders and members of the Provincial Bus Operators Association of the Philippines gathered at the Land Transportation
Franchising and Regulatory Board office this morning to show their support to the Department of Transport and Communications’ move to suspend the Board’s decision in reviving the 489 bus franchises of the now-defunct Pantranco North Express Inc.

In a letter addressed to Transport Secretary Manuel Araneta Roxas II, the PBOAP leaders said, “We cannot thank you enough for suspending the decision of LTFRB to revive the long dead franchises, under the guise of ‘social justice’ in awarding the choicest lines to companies owned by a single bus-owning family.”

The PBOAP is comprised of Northern and Central Luzon Bus Operators that include bus companies such as Baliwag Transit, Philippine Rabbit Bus Line, Partas Transport, G.V. Florida Transport, Saulog Transit, Dagupan Bus Company, Genesis Transport Service, and Fermina Express.

Under Sections 1 and 3, Rule 19 of the 2011 Revised Rules of Practice and Procedure of the LTFRB, the DOTC Secretary has the power to review “motu propio” and issue an order staying the execution of the decision of the LTFRB.

The DOTC legal team is now conducting a comprehensive and fair review of the LTFRB decision based on relevant documents received by the department including a copy of a petition filed by Mencorp Transport Corp. Inc. and Fermina Express Corp.

"The truth is we are at loss for words to express our deep gratitude over the gust of fresh and liberating wind from your good office,” the PBOAP letter stated. “We have come to realize that a serious effort to shift to a new governing paradigm of accountability and transparency is really being put in place by the government of President Benigno Aquino.”

"Masususi nating pinapag-aralan at titingnan ngayon ang lahat ng legal na aspeto sa pagbibigay ng prangkisa sa mga ruta ng bus na may kaugnayan sa isyung ito,” Roxas said. “Nais naming maging patas, hayag at transparent ang ating desisyon na naaayon sa batas.”  

Roxas added that there is a need for a comprehensive review of a franchise that has long expired since March 1993.

On 11 October 1993, a Notice of Sheriff’s Sale was issued by the Regional Trial Court of Manila and during a public auction Domingo Uy was awarded Pantranco’s Certificate of Public Convenience as highest bidder.

On 19 October, Domingo Uy applied for Approval of the Sheriff’s Sale but was dismissed by LTFRB on the ground that the CPCs issued to the bus company had already expired.  In January 1995, Domingo Uy executed a Deed of Absolute Sale in favor of Rufino Co, which included the expired Pantranco’s CPCs. 

Noong 2008, may sumubok na buhayin ito pero muling nagdesisyon ang LTFRB na patay na ito,” Roxas said.

On July 2008, LTFRB again denied the Application for Approval of Sale and Transfer with Extension of Validity.

On November 2009, a Certificate of Sheriff’s Sale was issued for the conduct of a public auction in favor of Pantranco Employees Association and Pantranco Retrenched Employees Association.

In an Order dated 07 January 2012, LTFRB denied the application for the Approval of the Certificate of Sheriff Sale with Extension of Validity with Omnibus Dropping and Substitution Units filed by the PEA-PTGWO and PANREA.

Ang nakapagtataka ay muling nabuhay ang prangkisa ng Pantranco,” Roxas said.

Roxas said that the government is fully aware of Pantranco employees’ plight as a result of the suspension of the franchise but added that the Department has a public duty to conduct a fair review of the case in accordance with the law.

"Nauunawaan namin sila at gustong tulungan pero hindi kami pwedeng lumabag sa batas,” Roxas added. “Ginagawa lamang namin ang tama, sumusunod kami sa isang hayag at transparent na proseso, at isang makatarungang hakbang na naaayon sa ating mga alituntunin."

Under the law, the certificate of public conveyance in the land transportation sector cannot be transferred arbitrarily without the consent of its rightful owner, which is the State.

As stated in PEA and PANREA paper, “Ang Pantranco ay nagkasala dahil sa halip na bayaran muna nito ang kanilang mga wages, inuna ng Pantranco ang pagbayad sa ibang kumpanyang pinagkakautangan nila, malinaw na paglabag sa mandato ng saligang batas at ng Labor Code.

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Notes to Editors:

DOTC – Department of Transportation and Communications
LTFRB – Land Transportation Franchising and Regulatory Board
PBOAP - Provincial Bus Operators Association of the Philippines
PEA-PTGWO - Pantranco Employees Association 
PANREA- Pantranco Retrenched Employees Association
CPC - Certificate of Public Convenience