SEVENTEENTH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES

Second Regular Session

SENATE

SENATE BILL NO. 1554

INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO

AN ACT ABOLISHING THE ROAD BOARD AS THE REGULATORY AGENCY OF THE MOTOR VEHICLE USER'S
CHARGE (MVUC) AND TRANSFERRING ITS POWERS AND FUNCTION TO THE DEPARTMENT OF PUBLIC
WORKS AND HIGHWAYS (DPWH) AND TO THE DEPARTMENT OF TRANSPORTATION (DOTr)

EXPLANATORY NOTE

Republic Act No. 8794 entitled "An Act Imposing a Motor Vehicle User's Charge on Owners of All Types of Motor Vehicles
and for other purposes" mandates the establishment of Road Board. The law empowered the Board to implement the
prudent and efficient management and utilization of the Special Funds for the Motor Vehicle User Charge collected from
the owner of the motor vehicle pursuant to the provision of RA No. 8794.

However, over the years, the Road Board has been challenged with issues of discrepancies, misappropriation and is
besmirched by allegation of corrupt government employees. Recently, in the 2016 Annual Audit Report, COA found that
there are MVUC funds yet to be liquidated and due to the absence of liquidation reports the status of the projects could
not be established.

On a different note, there have been observations that the existence of Road Board is redundant as its functions falls
within the powers and jurisdiction of the Department of Public Works and Highways and Department of Transportation.

For the purpose of efficiency and removing the redundancy of functions, the proposed measure seeks to abolish the Road
Board.Furthermore, it is imperative that the funds sourced out from the Motor Vehicle User's Charge be directly allocated
to the National Treasury for the purpose of ensuring the current administration's thrust on building infrastructure projects
that advances the quality of life experience and beneficial to the Filipino people, as this will open gates of opportunity and
steers forward to the country's 'Golden Age of Infrastructure'.

In view of the foregoing, the immediate passage of this bill is earnestly sought.

JOSEPH VICTOR G. EJERCITO

SEVENTEENTH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES

Second Regular Session

SENATE

SENATE BILL NO. 1554

INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO

AN ACT ABOLISHING THE ROAD BOARD AS THE REGULATORY AGENCY OF THE MOTOR VEHICLE USER'S
CHARGE (MVUC) AND TRANSFERRING ITS POWERS AND FUNCTION TO THE DEPARTMENT OF PUBLIC
WORKS AND HIGHWAYS (DPWH) AND TO THE DEPARTMENT OF TRANSPORTATION (DOTr)

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

SECTION 1. Paragraph 2, Section 7 of Republic Act No. 8794 is hereby amended to read as follows: -

SECTION 7. Disposition of Monies Collected. All monies collected under this Act shall be earmarked solely and used
exclusively (1) for road maintenance and the improvement of road drainage, (2) for the installation of adequate and
efficient traffic lights and road safety devices, and (3) for air pollution control.

All such monies collected shall be deposited in four (4) special trust accounts in the National Treasury, namely: (1)
Special Road Support Fund; (2) Special Local Road Fund;(3) Special Road Safety Fund; and (4) Special Vehicle Pollution
Control Fund. The distribution of collections under this Act shall be as follows:

xxx xxx xxx

The Special Road Support Fund, the Special Local Road Fund, and the Special Road Safety Fund shall be under the
DPWH, whereas the Special Vehicle Pollution Control Fund shall be under the DOTC.

xxx xxx xxx

[A Road Board to implement the prudent and efficient management and utilization of the special funds shall be organized
by the President of the Philippines. The Road Board shall be composed of seven (7) members, with the Secretary of the
DPWH as ex officio head, and the secretaries of the Department of Finance, Budget and Management, and the
Transportation and Communications, as ex officio members. The remaining three (3) members shall come from the
transport and motorist organizations which have been in existence and active for the last five (5) years prior to this Act.
They shall be appointed for the term of two (2) years each by the President of the Philippines upon the recommendation
of the secretaries of the DPWH and the DOTC.]

SECTION 2. Rules and Regulations - The secretaries of the Department of Public Works and Highways (DPWH) and the
Department of Transportation (DOTr), in consultation with the Department of Budget and Management (DBM), shall jointly
promulgate within (30) days from the effectivity of this Act, the rules and regulation to implement and carry out the intent,
objectives, purposes, and provisions of this Act, including such structural and procedural improvement in the systems and
agencies concerned as may be necessary to ensure the prudent, wise, effective, and efficient utilization of the special
funds established under Republic Act No. 8794: Provided, that the Secretary of DPWH shall prepare the portion of their
implementing rules and regulations pertaining to the Special Road Support Fund, the Special Local Road Fund, and the
Special Road Safety Fund, and the Secretary of the Department of Transportation shall prepare the portion of the
implementing rules and regulations pertaining to the collection of the motor vehicle's user's charge and on the disposition
of the monies accruing to the Special Pollution Control Fund. Provided further, that the secretaries of the DPWH and the
DOTr are proscribed from creating a secretariat and may only be assisted by a minimal number of staff in the
administration and implementation of the special funds established under Republic Act No. 8974.

SEC. 3. Separability Clause - Should any provision of this Act or part hereof be declared invalid or unconstitutional, the
other provisions or parts not affected thereby shall remain valid and effective.

SEC. 4. Repealing Clause - All laws, decrees, orders, and issuances, or portions thereof, which are inconsistent with the
provisions of this Act are hereby repealed, amended, or modified accordingly.

SEC. 5. Effectivity - This Act shall take effect fifteen (15) days from its publication in two (2) newspapers of general
circulation.

Approved
Duterte seeks abolition of Road Board, Sugar Regulatory Administration Saturday, September 09, 2017
By RUTH ABBEY GITA PRESIDENT Rodrigo Duterte revealed Saturday his plan to abolish the
"corruption-ridden" Road Board and Sugar Regulatory Administration. Speaking before the business
executives in Cagayan de Oro City, Duterte said he would ask Congress to draft a measure that would
abolish the two agencies. "If you can't control corruption in government, your life will not improve. That's
why I will get rid of it. When I go back next week, I will abolish one to three agencies. The Road Board
[and] Sugar Regulatory [Administration]. I will abolish it. Just place it in an office," the President said at the
closing rites of the 26th Mindanao Business Conference. "I will abolish them. I will suggest to Congress to
abolish that. Their funds should also be returned. Return it to Congress. Let Congress decide," he added.
Sugar Regulatory Administration, which was created on May 28, 1986, through Executive Order 18, is
mandated to promote the growth and development of the sugar industry through greater participation of
the private sector and to improve the working conditions of the laborers. The Road Board was meanwhile
created under Republic Act 8794 to impose a motor vehicle user's charge on owners of all types of motor
vehicles. It is taken to ensure prudent and efficient management and use of special funds known as the
Road Users Tax or Road Fund. House Speaker Pantaleon Alvarez recently filed House Bill 6236 that
seeks for the abolition of Road Board. On August 28, Alvarez noted a pattern of anomalies on the
supposed illegal use of the Road Fund, which was estimated to have amounted to a total of P90.7 billion
from December 2001 to December 2012. The Road Board is just another layer of bureaucracy, which
became another avenue for graft and corruption, Alvarez said. (SunStar Philippines)

Read more: http://www.sunstar.com.ph/manila/local-news/2017/09/09/duterte-seeks-abolition-road-board-

sugar-regulatory-administration
Follow us: @sunstaronline on Twitter | SunStar Philippines on Facebook (Saturday, September 09, 2017 By
RUTH ABBEY GITA

Read more: http://www.sunstar.com.ph/manila/local-news/2017/09/09/duterte-seeks-abolition-road-board-sugar-regulatory-

administration
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Abolition of Road Board wont affect DPWH projects Friday, September 15, 2017 By MERLINDA A.
PEDROSA BACOLOD City District Engineer Abraham Villareal of the Department of Public Works and
Highways (DPWH) said Thursday, September 14, that the abolition of the Road Board will not affect the
implementation of the projects in the city. If ever it will be abolished, it will not affect us because the
DPWH will also take over their duties, he said. President Rodrigo Duterte earlier announced that he
would ask Congress to draft a measure that would abolish the two agencies, the Road Board and Sugar
Regulatory Administration. Villareal said the Road Board was created under Republic Act 8794 to impose
a motor vehicle users charge on owners of all types of motor vehicles. Bacolod City Representative Greg
Gasataya said this matter will depend on the recommendations of the committee on public works. He said
several complaints were aired against the Road Board on the utilization of budget. Gasataya noted that
last year, he submitted a request to the Road Board to replace the street lighting system in Bacolod, but it
was not acted upon. We requested for the improvement of lighting system in the city and the budget
should be taken from the Road Board and not the DPWH, but until now it's still pending, the lawmaker
said. Moreover, Gasataya expressed reservations on the proposed abolition of the SRA. The sugar
industry needs an agency that will concentrate on the sugar industry alone. Once it will be abolished, its
difficult to be managed by the Department of Agriculture. This issue should be studied, he added.

Read more: http://www.sunstar.com.ph/bacolod/local-news/2017/09/15/abolition-road-board-wont-affect-

dpwh-projects-564264
Follow us: @sunstaronline on Twitter | SunStar Philippines on Facebook (Friday, September 15, 2017 By
MERLINDA A. PEDROSA

Read more: http://www.sunstar.com.ph/bacolod/local-news/2017/09/15/abolition-road-board-wont-affect-dpwh-projects-564264

Follow us: @sunstaronline on Twitter | SunStar Philippines on Facebook)
Abolition of Road Board sought
By Jess Diaz (The Philippine Star) | Updated April 15, 2015 - 12:00am
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MANILA, Philippines - The abolition of an attached agency of the Department of Public Works
and Highways (DPWH) spending about P12 billion a year in road users tax is being sought in
the House of Representatives.

Valenzuela City Rep. Sherwin Gatchalian is seeking the abolition of the Road Board through
Bill 3434.

Gatchalian said a recent Commission on Audit (COA) report has uncovered irregularities in
the use of P1.7 billion in Road Board funds.

Of the P1.7 billion, auditors have discovered that P319 million was spent for various road
projects in violation of Republic Act No. 9184, the Government Procurement Reform Act, he
added.

Gatchalian said the Road Boards functions can be transferred to the DPWH and the
Department of Transportation and Communications (DOTC).

His proposal could reduce the wastage of resources, he added.

Headlines ( Article MRec ), pagematch: 1, sectionmatch: 1

Gatchalian said the road users tax or motor vehicle users charge (MVUC) is the
governments third-biggest source of tax revenues.

It is mandated through Republic Act No. 8794, which allocates the funds exclusively for road
maintenance and pollution prevention projects, he added.

The Land Transportation Office collects the MVUC, which is in the form of increased annual
registration fees for motor vehicles.

The secretary of public works and highways is the chairman of the Road Board, while the
secretaries of finance, budget and transportation and communications are board members.

Bill 3434 seeks to mandate the DPWH and DOTC secretaries to come up with new
implementing rules and regulations for the collection and disbursement of the road users tax.

It would prohibit the two departments from creating a secretariat to oversee the use of MVUC
collections.
P90-B revenues lost to Road Board graft
Speaker
By Delon Porcalla (The Philippine Star) | Updated August 28, 2017 - 12:00am
5 1169 googleplus0 0

An estimated P90.7 billion in government revenues have been lost through the graft-ridden Road Board, Speaker Pantaleon
Alvarez said, citing the findings of the Commission on Audit (COA). Pantaleon Alvarez / Released, File
MANILA, Philippines - An estimated P90.7 billion in government revenues have been lost through the graft-ridden Road Board,
Speaker Pantaleon Alvarez said, citing the findings of the Commission on Audit (COA).

The Road Board is just another layer of bureaucracy, which became another avenue for graft and corruption, Alvarez said.

Alvarez said there was a pattern of anomalies at least for the past decade, where COA unearthed signs of illegal use of the
Road Fund, estimated to have amounted to a total of P90.7 billion from 2001 to December 2012.

From 2001 to 2010, COA also noted discrepancies amounting to P1.4 billion in the total collection of Road Users Tax between
the collections declared by the Land Transportation Office and the certification from the Bureau of Treasury.

Alvarez also disclosed that some P515.5 million of the Road Fund was used in 2004 to 2008 for payment of salaries,
allowances, maintenance and other operating expenses properly chargeable to the regular budget.

Also in 2011, some P62.5 million of the Road Fund was used for the Road Boards engineering and administrative overhead
expenses. This is on top of the P1.6 billion anomalies discovered in 2013, he said.

Headlines ( Article MRec ), pagematch: 1, sectionmatch: 1

Alvarez filed House Bill 6236 seeking to transfer the Road Boards functions to the Departments of Public Works and Highways
(DPWH) and Transportation (DOTr), owing to its billions of misappropriations that the national government collects as Road
Users Tax.

The Road Board, suspected by many to have been a source of deep-rooted corruption, was created under Republic Act 8794,
which imposed a motor vehicle users charge on owners of all types of motor vehicles.
Alvarez proposed that all Road Fund collections should be remitted to the National Treasury and appropriated to the proper
government departments such as the DPWH and the DOTr, which will implement the road safety measures and projects.

The measure retained, however, the original provision of the law that requires funds collected under RA 8794 (Road Board
charter) pertaining to the Trust Fund for Pollution Control, shall be appropriated to the Department of Environment and Natural
Resources.

Under its charter, the Road Board is tasked to ensure prudent and efficient management and use of special funds known as the
Road Users Tax (or Road Fund), which is earmarked solely and exclusively for road maintenance and improvement of road
drainage, installation of efficient traffic lights and road safety devices, and air pollution control.

Road Board on abolition call: We

already addressed Alvarez concerns
By: Vince F. Nonato - Reporter / @VinceNonatoINQ
Philippine Daily Inquirer / 07:32 PM August 27, 2017

The Road Board has already addressed the Commission on Audit findings on the alleged misuse of public funds, it said
in response to House Speaker Pantaleon Alvarezs call for its abolition.

In a statement on Sunday, the Road Board said we recognize the good intentions behind House Bill No. 6236
recently filed by Alvarez and Majority Floor Leader Rodolfo Farias, who sought to remove just another layer of
bureaucracy, which became an avenue for graft and corruption.

However, it said the audit observations on the alleged misuse of the road users tax from 2002 to 2013 were looked
into by the new administration which assumed office in August 2016.
ADVERTISEMENT

The Road Board said it already requested the National Bureau of Investigation to investigate and file charges against
unspecified individuals who have used spurious public documents to facilitate fund transfers.

Besides this, the Board said it rationalized the coordinating system between the Land Transportation Office, which
collects the tax, and the Bureau of Treasury to address the issue of unreconciled balances.

It touted that unreconciled balances have been pared down within a year by 86 percent to P607 million as of Aug. 24
this year, from the P4.385 billion recorded as of Sept. 26, 2016.

It also cited its circular prohibiting transactions with contractors and other private persons in the preparation of project
proposals for funding using Motor Vehicle Users Charge (MVUC), limiting the release of information to duly
authorized representatives of the project proponents.

The Board also said it sent letters to lawmakers and the DPWH-District Engineering Offices (DEOs) informing them of
the policy that no authority was granted to any individual to facilitate any approval and release of the corresponding
funds.

The statement also noted that the Office of the President already took control of the Board to prevent dissipation of
MVUC funds and malfeasance in public office.

The Road Board was created under Republic Act No. 8794 to manage the tax proceeds meant for road maintenance and
drainage improvement, installation of street lights and road safety devices, and air pollution control.

The bills explanatory note cited CoA findings that P90.72 billion have been illegally used from 2001 to 2012. This
included P515.5 million used to pay Road Board expenses and employee salaries from 2004 to 2008, P62.52 million
used for Road Board maintenance and overhead expenses in 2011, and P1.66 billion in irregularly used funds in 2013.
 ADVERTISEMENT

The House leaders instead want the road users tax to be remitted directly to the National Treasury to be appropriated to
the relevant agencies such as the Department of Public Works and Highways and Department of Transportation, which
could implement the street projects. JE

Read more: http://newsinfo.inquirer.net/925983/road-board-commission-on-audit-coa-pantaleon-

alvarez-abolition-misuse-funds-tax-road-users#ixzz4yZx4YEen
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NOTE: Look at this: http://www.roadboard.gov.ph/LS/fundavailment/Fund_Availment_Process.html

Road Board ensures transparent, effective

performance
(The Philippine Star) | Updated August 31, 2017 - 12:00am
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We recognize the good intentions behind House Bill 6236 filed by Speaker Pantaleon D. Alvarez. COA audit observations on the allege misuse of funds
referred to transactions of the previous administrations from 2002-2013. These audit observations were looked into by the new administration which
assumed office in August 2016.

We now have a new Board composed of men with proven integrity and probity who have never been involved in or condoned any malfeasance in
public office, namely: (1) Sec. Mark A. Villar of DPWH, (2) Sec. Arthur P. Tugade of DOTr, (3) Sec. Benjamin E. Diokno of DBM and Sec. Carlos G.
Dominguez III of DOF and Mr. Richard Necesario Sr. as representative of the private transport organizations.

Under the new leadership, the following initiatives were implemented to ensure effective and accountable performance of its mandate:

1. Rationalized coordinating system between the LTO which collects the Motor Vehicle Users charge (MVUC) and the Bureau of Treasury (BTr) which
maintains special trust accounts into which the MVUC funds are deposited. After almost one year from assuming office, the new Board reduced the
unreconciled balances between the LTO collections and BTr certified deposits from P4.385 billion as of Sept. 26, 2016 to P607 million or 86.15 percent
as of Aug. 24, 2017;

2. Issued memorandum circular to all Road Board officials and staff prohibiting transactions with contractors and other private persons in the preparation
of project proposals for MVUC funding and the facilitation and approval of funding requests and enjoining them that only duly authorized representatives
of the project proponents may be given information on the status of their funding requests;

3. Sent letters to the members of the House of Representatives, the Senate and the DPWH-District Engineering Offices (DEOs) informing them of the
Boards policy that no authority was granted to any individual to facilitate any approval and release of the corresponding funds. We have requested NBI
and other law enforcement agencies to investigate and file appropriate legal action against those individuals who have used spurious public documents
to facilitate fund transfers;

Homepage ( Article MRec ), pagematch: 1, sectionmatch: 1

To prevent dissipation of MVUC funds and malfeasance in public office, the Office of the President is now exercising control and supervision over the
Road Board. PHILIP PALMA, Road Board Secretariat, Road Board, Quezon City (http://www.philstar.com/letters-editor/2017/08/31/1734309/road-
board-ensures-transparent-effective-performance)

Road Board abolition sought

August 23, 2017

Written by Ryan Ponce Pacpaco

Published in Nation

Read: 378
SPEAKER Pantaleon Bebot Alvarez has filed a proposed law abolishing the Road Board and transfer its functions to the Department
of Public Works and Highways (DPWH) and to the Department of Transportation (DoTR), as a means to prevent alleged misuse of
billions of pesos of the Road Users Tax collected by the government.

In filing House Bill No. 6236, Alvarez noted that Road Board was created under Republic Act (RA) No. 8794, which imposed a motor
vehicle users charge on owners of all types of motor vehicles.

The board is tasked to ensure prudent and efficient management and use of the special funds known as the Road Users Tax (or Road
Fund), which is earmarked solely and exclusively for road maintenance and improvement of road drainage, installation of efficient traffic
lights and road safety devices, and air pollution control.

However, Alvarez noted that over the years, the Commission on Audit (CoA) has unearthed supposed signs of illegal utilization of the
Road Fund, estimated to have amounted to a total of P90.72 billion from 2001 to December 2012.

Obviously, the Road Board is just another layer of bureaucracy, which became another avenue for graft and corruption, said Alvarez
on the measure that was co-authored by House Majority Floor Leader and Ilocos Norte Rep. Rodolfo Rody Farias.

Among others, Alvarez noted that according to CoA reports, some P515.50 million of the Road Fund was allegedly used in 2004 to
2008 for payment of salaries, allowances, maintenance and other operating expenses, which were properly chargeable to the regular
budget.

In 2011, P62.52 million of the Road Fund was supposedly used for the Road Boards engineering and administrative overhead
expenses, according to CoA. Likewise, in 2013, CoA uncovered findings of alleged irregularities in the use of more than P1.66 billion of
the funds.

Moreover, Alvarez said CoA has pointed out that from 2001 to 2010, there were supposed discrepancies amounting to P1.495 billion in
the total collection of Road Users Tax between the collections declared by the Land Transportation Office (LTO) and the certification
from the Bureau of Treasury (BTr).

Under the bill, all collections of the Road Fund shall be remitted to the National Treasury and shall be appropriated to the proper
government departments such as the Department of Public Works and Highways and the Department of Transportation, which will
implement the road safety measures and projects.

On the other hand, the bill retained the original provision of the law which requires that funds collected under R.A. No. 8794 pertaining
to the Trust Fund for Pollution Control, shall be appropriated to the Department of Environment and Natural Resources.

(http://www.journal.com.ph/news/nation/road-board-abolition-sought)