Guadiz: Corruption is ‘impossible’ in franchise applications, route changes

House of Representatives hear the corruption allegations of LTFRB whistleblower Jeff Tumbado against suspended LTFRB chair Teofilo Guadiz on a hearing on October 23, 2023. (Screengrab from House of Representatives’ Facebook livestream)

MANILA, Philippines — Suspended Land Transportation Franchising and Regulatory Board (LTFRB) chairperson Teofilo Guadiz testified that asking money from transport groups in exchange for franchises or alteration of routes is supposedly impossible.

This is because the approval of the transactions supposedly hinges on decisions of several agencies and individuals, and not just him.

These are the statements of Guadiz as he appeared at the hearing of House committee on transportation on Monday.

“The determination of a route is not made by one person, but by a body composed of the LGU, DOTr (Department of Transportation), and LTFRB,” he told the panel.

“When you determine a route — which they say is for sale — the first thing that you do is you request the city and the municipality to collect data,” he said.

Guadiz was accused by his former executive assistant Jeff Tumbado of being involved in a scheme where bribe money was supposedly asked from transport groups.

The bribe was reportedly in exchange for the approval of franchise applications and route alterations.

Tumbado recanted his allegations.

And then, he issued another statement insisting on the accuracy of his original story.

At the hearing on Monday, Guadiz told lawmakers the routes are created by local government units (LGUs) and not LTFRB.

He said the Board only comes into play when city and municipal governments have passed resolutions on the matter.

“They (LGUs) will be the ones to determine the route through a resolution,” he pointed out.

“They identify the route that they want to traverse, the type of PUV vehicles, and the number of vehicles that they want to traverse along the area,” he explained.

“Now, assuming that the route has been determined, what is the next step? May mag-a-apply na po na public utility vehicles,” he said.

(There are public utility vehicle operators who will apply.)

Guadiz was ordered suspended by President Ferdinand “Bongbong” Marcos Jr. after Tumbado accused the LTFRB head of corruption and irregularities.

Tumbado made the allegations in a press conference last October 9.

But during the hearing on Monday, it was him who was scolded by lawmakers for giving confusing and contradicting answers to questions.

In one instance, he admitted that the messages used to implicate Guadiz were merely fabricated.

One of the messages claimed the suspended chairperson was supposedly informed about franchise applicants who were willing to pay grease money.

Due to the inconsistencies, Tumbado was cited in contempt by the committee.

Sagip Party-list Represenative Rodante Marcoleta made the motion to penalize the witness.

The move was seconded and then approved by committee chair and Antipolo 2nd District Representative Romeo Acop.

Acop later said he suspected Tumbado was also involved in the corrupt practices at LTFRB.

He said the former employee may now be confessing because he was shortchanged in the sharing of bribe money.

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