Bank told to abolish business permit requirement on transport coops

Bank told to abolish business permit requirement on transport coops

City officials requested the Land Bank of the Philippines (LBP) to immediately remove the requirement of business permit to transport cooperatives or corporations in their application for opening bank accounts to avail of the service contract program or other initiatives of the Land Transportation Franchising and Regulatory Board (LTFRB) or the Department of Transportation (DOTr).

Under Resolution No. 143, series of 2022, city legislators stated that the government bank must understand the unique situation of the city and the plight of the transport cooperatives or corporations as they are already recognized as a legal entity by their certificate of registration with the Cooperative Development Authority (CDA) or the Securities and Exchange Commission (SEC).

The council pointed out that most transport cooperatives or corporations in the city were newly established and that the office address was declared in the address of an officer or a member of the cooperative or corporation and almost all of them do not have any business permit.

Earlier, the LTFRB required transport cooperatives or corporations to open bank accounts with the government bank for them to avail of the service contract program or other related programs of the agency or the DOTr.

However, the LBP has been requiring transport cooperatives and corporations to present their business permits as one of the necessary documents for the opening of the required bank accounts for the purpose of the availing of LTFRB or DOTr’s public transport-related assistance programs.

According to the council, one requirement in the application of business permit with the City Permits and Licensing Division of the City Mayor’s Office is a locational or zoning certificate from the City Planning and Development Office (CPDO) and the City Market office for those located at the city public market.

Further, the CPDO also requires the applicants for business permits to present the title of the land or tax declaration of real property and building permit which is now one of the most pressing issues facing the city government as many businesses were not able to renew their permits because of such stringent requirements.

Copies of the above resolution will be transmitted to the LBP for information, guidance and ready reference to ensure that transport cooperatives and corporations can avail of the various public transport-related programs of concerned government agencies. – Dexter A. See