LTO-7 issues show-cause orders to five motorcycle dealers

By: By Irene R. Sino Cruz - CDN Digital Correspondent | March 10,2020 - 05:56 PM

CEBU CITY–The Land Transportation Office in Central Visayas had issued show-cause orders to five motorcycle dealers for violating the agency’s rules of accreditation.

During a press conference held Tuesday morning at the SM Seaside City, LTO-7 regional director Victor Caindec identified the dealers as Du Ek Sam Inc., Des Marketing Inc., Des Strong Motors, Desmark Corp. and Premio Corp.

Caindec explained that the motorcycle dealers should attach the temporary license plates on the unit before releasing it to the buyers.

Also, he added that the dealer should turn over the official receipt (OR) and the certificate of registration (CR) to the buyers.

The dealer’s authorization could not be used in lieu of the CR. Also, the dealer should indicate in its sales report submitted to LTO the branch where the actual purchase was made, Caindec pointed out.

All branches of a motorcycle dealer have to be accredited by the LTO before it could transact business, he disclosed earlier.

According to Caindec, they decided to conduct random audits on the dealers after the apprehension of motorcycles without any certificate of registration.

He clarified that it would take between 10 to 15 days for the registration of motorcycles as long as the dealers submit all required documents.

However, dealers blame the LTO for the supposedly delayed registration, with some telling their buyers the registration would reach between four to five months, Caindec said.

Even if the unit was acquired through installment, the dealer should release the OR and CR to the buyer after the chattel mortgage and annotation on the OR, he said.

The next step after the issuance of the show-cause order, the LTO-7 would hold a hearing, which would be open to the public, he added./rcg

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TAGS: five motorcycle dealers, LTO-7, no certificate of registration, public hearing, rules of accreditation, show-cause order, violations

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