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IC case awaiting Mar Roxas as DOTC boss

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INCOMING Transportation Secretary Mar Roxas has yet to assume his post, but already, a number of concerns are awaiting him.

Among them is the alleged nonaction of the Land Transportation Franchising and Regulatory Board (LTFRB) to an order issued by the Insurance Commission (IC) revoking the insurance license of the Philippine Accident Managers Inc. (Pami) and the Universal Insurance Transport Agency Inc. (Unitrans).

In an order dated April 28, 2011, the IC reported that it audited the financial performance of Pami and Unitrans and found grave acts of graft and corruption, such as disbursing of funds through donations and honorariums without named recipients apart from the nonpayment of the right income tax and the non-payment of claims among others.

The order was reportedly forwarded to the LTFRB on May 6 but no action has been made yet.

A stakeholder who for anonymity said failure to act on it puts the Passenger Personal Accident Insurance (PPAI) Program in limbo.

The violations, he said, were so grave that the IC had to act to protect the insuring public.

“It seems LTFRB chairman Nelson Laluces has not been bothered by these anomalies happening in his agency who is implementing the PPAI program.  Would he put the name of his classmate in law school in bad faith who happens to be the Executive Secretary of the President?” the stakeholder said.

He added, “How can the LTFRB guarantee to the operators that in case an accident occurs, their claims will be paid by a canceled insurance agent, like Pami and Unitrans? Are they part of the honorariums and donations that the IC found out in their audit?”

Roxas has accepted the DOTC portfolio after Secretary Jose “Ping” de Jesus resigned citing health reasons. Lawmakers, however, claimed the resignation was triggered by the Torres case.

 


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