LTFRB cancels franchises of bus firm in Skyway mishap

MANILA, Philippines - Saying Don Mariano Transit Corp. had been blatantly negligent in maintaining its vehicles, the Land Transportation Franchising and Regulatory Board (LTFRB) yesterday cancelled all seven franchises granted to the bus firm following the fatal Skyway accident that killed 21 people last Dec. 16, 2013.

This is the first time that the LTFRB cancelled the permits of a bus firm’s entire fleet due to an accident since the board was created in 1987, said LTFRB chair Winston Ginez. 

Don Mariano has seven franchises covering a total of 78 buses.

The franchise of the bus involved in the Skyway is for the Pacita-Novaliches route. The six other franchises of the bus firm is for the Baclaran-Novaliches route.

Sought for comment on the board’s decision, the bus firm’s lawyer, Jason Cantil, said the ruling seemed harsh since only one bus was involved in the accident and the decision should not have included the company’s entire fleet. 

He said they respect the board’s decision but they would appeal the ruling within the prescribed 15-day period. 

Ginez, board member Ronaldo Corpuz, and board executive director and OIC board member Roberto Cabrera III signed the 20-page decision that was released yesterday.

The board earlier imposed a 30-day preventive suspension on the bus firm’s entire fleet while it investigated the Dec. 16 accident.

The road accident on Skyway left 21 people dead, including the bus driver. 

Cantil said the families of 10 of the fatalities have agreed to an amicable settlement with the company and the relatives would no longer press charges.

The monetary settlement ranged from P110,000 to P150,000 on top of the burial assistance provided by the company.

Cantil said the company has so far incurred around P11 million in medical expenses.

Illegal change of chassis

The discovery of the illegal change of chassis of the buses involved in the Skyway accident and past incidents appeared to have pinned down the bus company. 

“Considering the number of violations committed by respondent in the past and now the discovery of its illegal change, transfer and use of a different chassis from that registered with the LTFRB and the LTO (Land Transportation Office), it is only apt that the board go further from mere suspension or revocation of the particular unit involved in the accident or the certificate of public convenience (franchise) where the bus unit belongs,” the ruling stated.

During a press conference, Ginez said illegally changing the chassis was very dangerous since it was the basis for determining the identity of the bus. 

According to the board, changing the chassis without informing the board was a clear misrepresentation, to say the least, which the board could not tolerate.

The board said the bus in the Skyway accident was “not roadworthy” and Don Mariano Transit “was remiss and blatantly negligent in the maintenance and repair of its bus units and in the performance of its business affairs and activities.”

The board also cited past incidents for which the bus firm was sanctioned, including a May 2012 incident wherein a call center agent was stabbed while in a Don Mariano bus;  the July 2012 accident along the EDSA-Ortigas Avenue flyover, which injured people; and the August 2012 accident along the Magallanes flyover that killed a motorcycle rider.

While the bus firm claimed that the unit involved in the Skyway accident should have been the only one covered by the case, the board insisted that it had “every right to look into all of the units” covered by all its franchises, owing to the past incidents its buses got involved in. 

With the decision, the board ordered the destruction of the yellow plates of the buses earlier confiscated by the board when it imposed the preventive suspension.

Since the government has imposed a moratorium on the granting of franchises for public utility vehicles, the seven franchises of Don Mariano will not be issued again under the current rules.