Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. _5683

Introduced by Representatives Angelina “Helen” D.L. Tan, M.D., Sol Aragones,
Rose Marie “Baby” J. Arenas, Maria Vida E. Bravo, Evelina G. Escudero,
Cheryl P. Deloso-Montalla and Estrellita “Ging” B. Suansing

AN ACT ABOLISHING THE ROAD BOARD AND TRANSFERRING ITS
POWERS AND FUNCTIONS TO THE DEPARTMENT OF PUBLIC AND
WORKS AND HIGHWAYS AND TO THE DEPARTMENT OF
TRANSPORTATION, AMENDING FOR THE PURPOSE REPUBLIC ACT NO.
8794, OTHERWISE KNOWN AS THE MOTOR VEHICLES USER’S CHARGE

EXPLANATORY NOTE

The Road Board was created by virtue of 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". The law aims to implement the prudent and efficient management
and utilization of the special funds collected via Road User's Tax, which are earmarked
solely and used exclusively for the maintenance of roads and the improvement of road
drainages, including the installation of adequate and efficient traffic lights and road
safety devices and air pollution control.

The Commission on Audit (COA) has reported discrepancies amounting to P1.495
Billion in the total collection of Road User’s Tax from 2001 to 2010 as stated in the
respective certifications of the Land Transportation Office and the Bureau of Treasury’.
The collection from the road user's tax was estimated at P90.72 Billion from 2001 to
December 20123.

In its various audit reports, COA has observed irregularities involving the use of
MVUC funds: In 2011, COA reported that the P62.52 Million fund of the Road Board
earmarked for road maintenance and repair was illegally diverted to highly questionable
projects. In 2013, COA uncovered numerous irregularities in the expenditure of more
than Pi Billion in funds. In 2015, COA observed that fund transfers to various national
government agencies and local government units aggregating to more than P1 Billion
remained unliquidated.

Of the total allotments from the MVUC Fund for CY 2015 amounting to
P14,405,135,957, only 80.34% or P11,573,349,489 was obligated, hence, allotments
intended for road repair and maintenance, road safety and vehicle pollution control in
the amount of P2,831,741,468 have expired.

Significantly, COA discovered that out of the “520 MVUC projects programmed
for implementation in CY 2015, 127 or 24.42% were completed, 150 or 28.85% were on-
going, and 243 or 46.73% were not implemented as of December 2015.” Likewise,
“sample validation of 16 on-going projects and eight completed projects in 15 DPWH

COA finds P1.49B ‘discrepancy’ in road users' tax balance, October 27, 2011, GMA News Online
(http://www.gmanetwork.com/news/story/236681/news/nation/coa-finds-pi-4gb-discrepancy-in-road-
users-tax-balance)

2 Pimentel: Road Board an ‘avenue of graft, corruption’, May 6, 2015, Inquirer.net
(http://newsinfo.inquirer.net/689588 /pimentel-road-board-an-avenue-of-graft-corruption)


offices disclosed that only two projects are on-going within contract schedule, while the
implementation/completion of 22 projects were delayed due to inefficient planning and
supervision, as evident by unresolved Right-of-Way, clearance/permit, funding and
construction issues. Hence, government funds were already allotted but the intended
projects could not be completed.”

Clearly, the Road Board has become another layer of bureaucracy that has made
the road user's tax as a milking cow for corrupt government officials. This measure seeks
to abolish the Road Board and re-channel its funds to proper government agencies such
as the Department of Public Works and Highways and the Department of
Transportation, which will be tasked to implement the road safety measures and
projects in the country.

Hence, immediate approval of this bill is earnestly requested.

Angelina “Helen” D.L. Tan, M.D. Sol Aragones

Rose Marie “Baby” J. Arenas Mpria|Vida E. Bravo
Mtterler! .
—~ Evelina G. Escudero eryl P. Deloso-Montalla

lV
andl “Ging” B. Suanging


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

5683

HOUSE BILL NO.

Introduced by Representatives Angelina “Helen” D.L. Tan, M.D., Sol Aragones,
Rose Marie “Baby” J. Arenas, Maria Vida E. Bravo, Evelina G. Escudero,
Cheryl P. Deloso-Montalla and Estrellita “Ging” B’ Suansing

AN ACT ABOLISHING THE ROAD BOARD AND TRANSFERRING ITS
POWERS AND FUNCTIONS TO THE DEPARTMENT OF PUBLIC AND
WORKS AND HIGHWAYS AND TO THE DEPARTMENT OF
TRANSPORTATION, AMENDING FOR THE PURPOSE REPUBLIC ACT NO.
8794, OTHERWISE KNOWN AS THE MOTOR VEHICLES USER’S CHARGE

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

SECTION 1. 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

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 DEPARTMENT OF TRANSPORTATION (DOTr).

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, an the Transportation and Communication, as ex officio members. The
remaining three (3) members shall come from transport and motorist organization,
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.]

THE SPECIAL ROAD SUPPORT FUND, THE SPECIAL LOCAL ROAD FUND
AND THE SPECIAL ROAD SAFETY FUND SHALL BE UNDER THE MANAGEMENT
AND DISPOSAL OF THE DPWH, WHEREAS THE SPECIAL VEHICLE POLLUTION
CONTROL FUND SHALL BE UNDER THE MANAGEMENT AND DISPOSAL OF THE
DOTR


SEC. 2. Rules and Regulations. ~ The DPWH and the DOTr shall, within thirty
(30) days from the effectivity of this Act, promulgate the rules and regulations to
implement and carry out the rules and regulations to implement and carry out the intent
of this Act. Provided, that the Secretary of the DPWH shall prepare the portion of the
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
DOTY 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 DOTY 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. 8794.

SEC. 3. Repealing Clause. - All laws, presidential decrees, executive orders, rules
and regulations or parts thereof which are inconsistent with the provisions of this Act
are hereby repealed or modified accordingly.

SEC. 4. Effectivity. - This act shall take effect fifteen (15) days alter its publication
in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,