3 ‘fatal admissions’ cited in train fare hike hearing

MANILA, Philippines–The Department of Transportation and Communications (DOTC) made “three fatal admissions” at the first congressional hearing on the controversial Light Rail Transit (LRT) and Metro Rail Transit (MRT) fare increases on Thursday, giving grounds for Congress to ask for a deferment of the fare hikes, according to a party-list lawmaker.

The first was the admission by Undersecretary Jose Lotilla that the DOTC did not have express authority to enforce the fare increases, which made them “illegal,” said Bayan Muna Rep. Neri Colmenares.

Bayan Muna Rep. Neri Colmenares. INQUIRER.net FILE PHOTO

Lotilla told the committee chaired by Catanduanes Rep. Cesar Sarmiento that in the case of the MRT, there was no specific law authorizing the DOTC to approve fare hikes but only “by contractual agreement,” while in the case of the LRT, its charter only allowed such increases upon the approval of the LRT board, even without public consultation.

Making profit

The second was Lotilla’s admission that both LRT Lines 1 and 2 and MRT 3 were actually making profit, with ticket sales more than enough to cover operations and maintenance costs every year, said Colmenares.

The proceeds of the fare hikes would thus go to private concessionaires operating the trains under the terms of their contracts with government, he said.

The third, according to Colmenares, was the admission by Lotilla that the LRT fare hike was not the last, and that under a concession agreement for the Cavite extension of Line 1, there would be a 10-percent fare increase every two years in the next 32 years.

Colmenares said these three facts admitted to by the DOTC official were enough grounds for the transportation committee to issue a congressional resolution asking for a deferment of the fare hikes, pending the Supreme Court’s resolution of the petitions to stop them.

But Cavite Rep. Elpidio Barzaga Jr. said the committee should finish the interpellation and all hearings before issuing any such resolution, as not all points of view have been heard.

‘Treachery, deception’

After a brief back-and-forth, Colmenares withdrew his motion, even as he continued denouncing what he described as the Aquino government’s “treachery and deception” in approving the fare hikes at the hearing, which was marked by the nonappearance of Transportation Secretary Joseph Emilio Abaya.

Lotilla explained Abaya’s absence by saying the latter was preparing for the papal visit next week.

To which Colmenares responded: “It is deplorable that DOTC Secretary Joseph Abaya did not even show up at the hearing but is all over media defending the fare hike.”

Buhay Rep. Lito Atienza also assailed Abaya’s nonappearance, saying the latter was the only one who could shed light on the issue.

“We ask committee chairman Cesar Sarmiento to compel Secretary Abaya to appear before the committee during the next hearing and personally explain the details of the concession agreement, which was signed by him, for the privatization of the LRT and MRT,” he said.

On Jan. 4, LRT and MRT fares were increased by 50 to 87 percent, drawing protests from passengers and various groups who questioned the timing and validity of the fare hikes.

‘Most controversial’

Colmenares said the LRT 1 was the “biggest project auctioned so far by the Aquino administration under its public-private partnership program at P65 billion.”

“It is also one of the most controversial because the Aquino government has given greater guarantees and perks than the ‘sweetheart deals’ done by previous administration,” he said, taking note of the 10-percent fare hikes every two years authorized under the agreement.

As for the MRT, Colmenares said the DOTC was faced with two options: to question the “onerous” contract entered into by the previous administration or to simply pass on the cost to the public.

He said the choice made by the agency was obvious.