Is he up for the job?

"The secretary need not wait for a new measure regulating couriers."

Is former Senator Gringo Honasan really up for his newfound responsibilities as Information and Communication Technology secretary?   

Despite the existence of a law regulating the logistics industry, Honasan is still seeking Congress assistance to help his agency crack down on illegal logistic service providers, particularly couriers preying on the public and depriving the government of income taxes.  He is urging Congress to craft legislation purposely to regulate freight and courier services in the country. 

In an interview at the sidelines of Congress, Honasan stressed it would be better if there is a law regulating or institutionalizing freight activities so that customers would be protected by law. 

Since logistic service providers transport not only goods but also people, Honasan said he prefers a regulatory intervention through legislation first. Only then, he said would he go after the illegitimate couriers through an effective executive action which he vows to implement.

The attention of the DICT was called to address the proliferation of illegal and unlicensed foreign couriers that are affecting the income of the legitimate freight companies. 

It was Buhay Party-list Rep. Lito Atienza who disclosed that the growing problem on the industry that is putting the Filipino consumers and their cargoes at risk. And then, there are the unpaid taxes. 

Honasan clarified that the agency’s concern is the fast and reliable connectivity or internet in the country which was being utilized by these freight and courier companies. 

However, the logistics industry is already regulated under the present laws. Under the law, the accreditation and regulation functions for domestic and international sea freight forwarding falls under the jurisdiction of the Department of Industry, the domestic and international air freight forwarders under the domain of the Civil Aeronautics Board, while the courier services falls under Honasan’s agency—the DICT specifically its Postal Regulations Division. 

It was actually the lack of action on the erring couriers during the watch of Honasan’s predecessor which prompted Atienza to vow to file a resolution calling for an in-depth investigation on this syndicate because of its effect to the legitimate courier and forwarding companies that are paying the right taxes to the government. 

Atienza vowed to file a resolution seeking congressional probe on the industry which is now reported to be worth some P36 billion. 

Atienza called on government agencies to look into these companies that are reportedly operating without proper license. Among the largest of such companies is Ninja Express which is reportedly holly owned by Ninja Logistics PTE, LTD—a Singaporean corporation. Another company, J&T, is a forwarder licensed by the DTI and the CAB but reportedly has no DICT approval to render domestic courier services. 

A company called Black Arrow Express is licensed to operate in Metro Manila but has apparently extended its operations to Cebu and Leyte. The veteran solon also lamented there are instances when these couriers are being used illegally. 

For example, there was a recent news report about drug packages being delivered through courier services. 

Likewise, media reported a Grab driver uncovering a scheme used by drug traffickers. Refusing to open the package he was tasked to deliver, the Grab driver reported directly to the police who discovered the package containing drugs. In another instance, a TNVS driver was arrested while delivering another drug package to a consignee. 

The Quiapo explosion in May 2017 was also traced to a package sent and carried by a Grab driver to its consignee. Apart from consumer safety, some of these services are found to be violating constitutional limits on foreign ownership. Since they operate as a public service or convenience, logistics companies are supposed to be covered by the 60-40 ownership rule. 

Honasan need not wait for a new measure regulating couriers. He is already empowered by the present laws. If there is need for new legislation, maybe it would have to cover the small players subcontracted by Grab, Lalamove and other facilitators. But not those big-time players preying on the public and evading paying taxes to the government.