LTO-7 endorses cancellation of accreditation of major motorcycle dealer

LTO-7 Director Victor Caindec files an endorsement for cancellation of accreditation of a major motorcycle dealer in Central Visayas to the national LTO.

CEBU CITY, Philippines — The Land Transportation Office in Central Visayas (LTO-7) has recommended the cancellation of the Manufacturer, Assembler, Importer, Rebuilder, Dealer, and Other Entities (MAIRDOEs) Accreditation of a major motorcycle dealer in Central Visayas.

This after investigations saw enough evidence of an alleged violation of the MAIRDOEs of a private motorcycle dealer with branches all over Central Visayas.

LTO-7 Director Victor Caindec endorsed the cancellation to the national LTO on April 28, 2022.

The director said the investigation was triggered by hundreds of individual letters sent by the dealers to LTO-7 complaining about delayed registration.

These letters were sent to LTO-7 sometime in July 2020.

Caindec said that based on LTO Administrative Order AVT-2014-023, cancelation of Certificate of Accreditation and blacklisting and cancelation of Certificate of Stocks Reported (CSR), sales report, and registration is warranted when there is “Submission of fraudulent, fake or falsified stock/sales periodic reports as required by law, rules, and regulations.”

One of the major responsibilities of acquiring MAIRDOEs accreditation is to “Truthfully report the true nature of a sale.”

“Why is it that these dealers do not or have not become accountable for ensuring that a certificate of registration reaches the clients. If you buy a motorcycle from the dealer, di mo matter if cash or installment, they have to give you the original certificate of registration,” said RD Caindec.

He added that the dealers have been abusing the system of MAIRDOEs by pretending not to be in possession of the original certificate of registration and stating that it is with LTO.

“If you sold a vehicle in Carcar (City), do not report it at a place for example at the Jakosalem (Cebu City). If you sold or issued a receipt for Cagayan de Oro, do not report the sale to have been made in Balamban,” said the regional director.

Caindec also reiterated “accountability” as one of the major roles for MAIRDOEs accreditation holders.

“The accreditation is assigned to a specific person, it cannot be encoded by just anybody, the reason there is that if there are inconsistencies in the records created, it is clear who is responsible for such act and it’s called accountability.”

AO No. AVT-2014-023 section 9.2.4 states that a violation is made when “The accredited MAIRDOE allowed the use of its accreditation by non-accredited persons or entities.”

“The implications therefore of this resolution will put all dealers in check in the sense that this will clearly establish and become a very very strong reminder to all dealers that their access to the LTO DIY system and being able to affect registrations of new vehicles in behalf of their clients comes with responsibilities.”

“These cases that we have discovered and investigated came from their own mouths, gikan pa sa ilang baba. Sila ang nireklamo nga nalangay daw ni ang rehistro aning mga sakyanan o motora. As it turned out, ang ang di malangay, nga naa man diay silay violations gibuhat,” said Caindec.

He also revealed that this is just the beginning and more resolutions may be filed and endorsed against the erring motorcycle dealer and its affiliates.

“We’re just going through the motions of finalizing everything, this is
not the only cancellation, we are in possession of more than a thousand records that establish the same patterns of violations. And we are determined to move in that direction.”

“Everybody thinks that the only way that I can win this fight is to go to court, I agree (with them). But while I am fighting this case in court everybody needs to be reminded that we are talking about the criminal aspect of that complaint. My administrative sanction can be rendered without me having to prove any criminal action,” said the regional director.

LTO shall impose administrative penalties after the Assistant Secretary finds it justifiable for the cancelation of the accreditation.      /rcg

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