The Land Transportation Franchising and Regulatory Board (LTFRB) said it did not issue a cessation order on the point-to-point (P2P) bus operations of Froehlich Tours, Inc. (FTI) which is under investigation for alleged financial incapability.

Department of Transportation (DOTr) Assistant Secretary Mark Richmund De Leon made this clarification after the SM North EDSA to SM Megamall and Trinoma to Park Square routes, plied by the P2P buses of FTI, have temporarily ceased operations since most of FTI’s buses were either repossessed for non-payment or towed by the LTFRB.

“Yung pagkakaalam natin, walang operations dun sa ruta na yun kasi yung ibang mga units na finield nila na temporary, wala rin permit sa LTFRB. So, at least four units yung tinow ni LTFRB as colorum vehicles (As far as we know, there are no buses operating in that route because the temporary units fielded by FTI did not have permits from the LTFRB. So, at least four units were towed by the LTFRB for operating without proper documentation),” De Leon said in a media interview.

In a statement on Sunday, the LTFRB said the finances of FTI came under investigation after MAN Automotive Concessionaires Corporation (MAN), a truck and bus importer and distributor, requested a probe after the bus operator failed to pay for the 17 bus units it purchased for PHP185.7 million.

“FTI was only able to pay PHP39.2 million which resulted in MAN having to repossess 12 bus units. To this day, PHP19.75 million is still left unpaid by FTI,” the LTFRB statement read.

MAN sent a letter to the LTFRB last November 2019 requesting an investigation on the capability of FTI “to maintain its operations, fund expenses that may arise from accidents, and continue to provide public service”.

The LTFRB said an inspection of FTI buses revealed that the company’s provisional authority has already expired and no renewal was filed, preventing the company from operating as a public service provider.

“As of now, an order has been sent out to FTI to submit its 2019 Financial Statement within a period of five days from receipt of a copy. The hearing is reset, upon the agreement of both parties, on 3 March 2020 at the LTFRB Central Office,” the LTFRB said.

Pending the result of the hearing, the LTFRB said it will adopt a measure in the coming weeks to ensure that the affected routes and the riding public “will be provided with the needed transport service”.

According to the LTFRB, FTI was one of the first to be awarded P2P routes back in 2016. (PNA)