At least seven of 14 transport cooperatives in Iloilo City are on the verge of bankruptcy due to heavy bank loans, poor management, and declining revenues, Councilor Sedfrey Cabaluna revealed.
Cabaluna said the financial strain from rising fuel prices, intense route competition, and the end of pandemic-era subsidies has left many cooperatives struggling to repay loans under the government’s Public Utility Vehicle Modernization Program (PUVMP).
He warned that if unaddressed, the situation could lead to mass bankruptcies and job losses among drivers and operators.
The councilor criticized the Department of Transportation for failing to provide adequate support and business guidance to cooperatives that complied with the modernization mandate.
Cabaluna also called for a national law to institutionalize and strengthen the PUVMP to prevent local governments from bearing the brunt of its implementation.
Source: PhilNews24 | October 10, 2025
