In view of reports that land transport operators duly franchised by the LTFRB, particularly bus and taxi operators, are not exercising the required precautions under the law in the hiring and employment of their drivers and conductors and considering the need to monitor the operations of public land transport operators with respect to public interest and safety, transport operators who:

1. hire or employ drivers with criminal records or who are involved in accidents, whether covered by pending civil or criminal cases or not, resulting in death or serious and less serious physical injuries as defined under the Revised Penal Code, will in addition to the existing sanctions and penalties, be penalized with the suspension of their fleet operations for three (3) days for the first offense, five (5) days for the second offense, and seven (7) days for the third offense;

2. hire or employ conductors with pending criminal cases rendering them unfit to be employed in a public enterprise will be penalized with a fine of P3,000 for the first offense, P5,000 for the second offense, and P10,000 for the third offense.

These penalties will be imposed after a summary hearing at which the operator concerned shall be given the opportunity to present his/her side. The Board, motu propio, can initiate the necessary investigation of the operator violating this regulation.

This Memorandum Circular shall take effect fifteen (15) days after the filing of three (3) copies hereof with the U.P. Law Center, pursuant to Presidential Memorandum Circular No. 11, dated October 9, 1992.

Adopted: 5 Sept. 1995

(SGD.) DANTE M. LANTIN
Chairman

(SGD.) NABOR C. GAVIOLA
Board Member