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ARTA orders LTFRB to release CPCs to TNVS


By Bernie Cahiles-Magkilat

The Land Transportation Franchising Regulatory Board (LTFRB) has been ordered by the Anti Red Tape Authority (ARTA) to release the Certificate of Public Conveyance (CPCs) to all TNVS (transportation network vehicle services), which have completed their requirements, in what could be the first salvo of the government’s drive to make doing business in the country easier and rid government agencies of corrupt practices.

“LTFRB is hereby ordered to issue the corresponding CPCs, or other appropriate licenses or certifications for all these TNVS applications,” stated the first ARTA Order to a government agency following the effectivity of the IRR last August 4.

The order was based on Section 10 of RA 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018 and Rule 8 of its Implementing Rules Regulations, which require all government transactions by the private sector to be approved within 3 (simple) 7 (complex) and 20 days (highly technical).

ARTA Director-General Jeremiah Belgica said the order to LTFRB was made in view of the various complaints received by the Authority that there are number of pending applications with complete requirements but have not been issued CPCs by the agency.

Belgica said that failure to comply with the order would have consequences under the law.

“This opens up the possibility of filing administrative case to persons concerned which are the members of the Board and the Chairman himself. That is the next step,” he warned as he noted that should LTFRB refuses to issue the CPCs or other licenses to TNVS. First offense would be six-month suspension and dismissal from office and forfeiture of government benefits for corresponding transgressions.

According to Belgica, LTFRB said they have difficulty processing all the applications for lack of manpower and infrastructure but Belgica said that by approving these TNVS this would mean declogging their work. It would, however, mean losing the P2,000 fee for renewal of TNVS Provisional Authority.

ARTA would also move for the LTFRB to remove the requirement for TNVS to submit the bank certificate of conformity and give another mode of compliance because the former requirement is difficult for TNVS to comply.

He explained that banks refused to give this kind of certificate because this would mean converting the vehicle into a public utility from being private when the TNVS are supposed to be private and that owners are not required by TNCs to operate within a specified period of time. In addition, converting their classification would raise their bank loans and payments.

In addition, the LTFRB was also directed to review and revise its Citizen’s Charter, which the Authority believes needs reengineering to take into consideration its policy recommendations and must include the documentary requirements and processing time specific to TNVS applications.

The revised Citizen’s Charter must likewise indicate which transactions are considered simple, complex or high technical in accordance with the ARTA Law.

Such revised LTFRB Citizen’s Charter shall be submitted to the Authority within 20 days from receipt of the order, which shall be subject to review by the Authority.

With that, Belgica said they would be recommending an input for a new bill on new technology driven businesses such as TNCs under Senator Grace Poe.

Meantime, ARTA also released yesterday their guidelines in the crafting of Citizen’s Charter for all government agencies and to submit these by December 6 this year. While agencies are crafting their Citizen’s Charter, Belgica has ordered government agencies to submit all requirements that fall under 3-7-20 processing period.

The Citizen’s Charter primarily contains the summary of the agency’s functions and the requirements for all applicants dealing with the agency. No other requirements would be demanded from the applicant, other than those listed in the Citizen’s Charter.

The Citizen’s Charter must also be published in the agency’s website, on its billboards and in conspicuous areas in its premises.

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