Question & AnswerQ&A (LTFRB MEMORANDUM CIRCULAR NO. 98-026)
The main purpose of LTFRB Memorandum Circular No. 98-026 is to suspend the acceptance and processing of applications for franchises to operate passenger public utility vehicles entering or touching Baguio City and certain areas in Region 1 to address traffic congestion caused by the proliferation of public utility vehicles.
The areas affected are Baguio City, La Trinidad, Itogon, Sablan, and Tuba, all in Region 1.
The Circular took effect immediately on September 24, 1998.
A public utility vehicle (PUV) refers to any vehicle authorized to carry passengers for hire, generally including jeepneys, buses, taxis, and vans operating on public roads.
The suspension was prompted by concerns over circumvention of the moratorium causing excessive proliferation of public utility vehicles, thereby worsening the traffic problem.
The memorandum was signed by Dante M. Lantin (Chairman), Vigor D. Mendoza II (Board Member), and Samuel Julius B. Garcia (Board Member) of the LTFRB.
The memorandum itself does not specify penalties, but under Philippine law, operating a PUV without a franchise or authority from the LTFRB is subject to administrative and criminal penalties.
The suspension covers all passenger public utility vehicles entering or touching the specified areas within Region 1, meaning no new franchise applications for PUV operation within these areas will be accepted or processed until further notice.
The suspension is temporary and shall remain in force until further notice from the LTFRB.