LTFRB warns P2P firm on illegal operation

MANILA, Philippines — The Land Transportation Franchising and Regulatory Board will impound a point-to-point bus firm’s vehicles if they are caught operating since the firm’s franchise has expired, the LTFRB warned yesterday.

Froehlich Tours Inc. (FTI) “can resume their operations provided that they comply with the agency’s requirements on the renewal of Provisional Authority (PA). Should they be caught operating today, given that they have not renewed their PA yet, their units will be impounded,” the LTFRB said in a statement.

A PA allows the company to run as a public service provider.

The LTFRB said it found that FTI’s PA had expired when the agency looked into the company upon the request of MAN Automotive Concessionaires Corp. (MAN), an exclusive truck and bus importer, assembler and distributor.

In a November 2019 letter, MAN requested the LTFRB to look into FTI’s financial capability, claiming FTI initially acquired 17 buses for P185.7 million but was only able to pay P39.2 million.

MAN said it repossessed 12 buses and FTI still owes P19.75 million.

“MAN submitted a report requesting the agency to look into the financial capacity of FTI, so the order issued by the board was only for FTI to submit their financial statement,” LTFRB said.

The LTFRB also clarified that it did not issue a cessation order against the P2P operations of FTI, which plied the SM North EDSA-SM Megamall and Trinoma-Park Square routes, while the firm is under investigation.

FTI voluntarily stopped operations without the agency’s intervention, the LTFRB said.

“There is no order from the Board for FTI to cease operations because an expired PA is not a ground for one. PAs can be renewed,” the LTFRB explained.

The Department of Transportation on Monday said that a hearing was set on March 3 at the LTFRB’s central office to discuss the issue.