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Metro Manila (CNN Philippines, December 4) – Valenzuela City Mayor Rex Gatchalian threatened on Friday to suspend the NLEX Corporation’s business permit due to heavy traffic caused by its new toll system.
In a complaint dated Nov. 3, Gatchalian gave the company an ultimatum, asking its officials to submit a response in the next few days or face the consequences.
“You only have 24 hours from the receipt of this letter to present to the City Government your action plan to resolve your RFID fiasco,” said the letter addressed to the COO of NLEX, Raúl Ignacio. “Similarly, you only have 72 hours from receipt of this letter to present your explanation as to why the city government should not suspend your business permit in light of your miserable breach of your obligations.”
Three days ago, the company fully rolled out its RFID or radio frequency identification systems at toll booths, including some in the city of Valenzuela, to switch to cashless transactions.
The system was designed to scan RFID tags on vehicles to help prevent the spread of COVID-19 through human contact. But in the early days of its full implementation, the project failed, resulting in heavy traffic due to sensor errors, insufficient load on motorists’ RFID accounts, and non-compliance with the sticker requirement. The results showed tons of cars waiting in line in stopped traffic.
Gatchalian said he spoke with Ignacio previously, but his concerns allegedly “fell on deaf ears.”
“Until it acts together and perfects its existing toll road systems, the city government may stand down as its partner in its future planned expansions in our jurisdiction,” the complaint added.
As for the toll gate officials, they previously said that heavy traffic congestion was expected as not all vehicles may have installed their decals yet, not to mention that implementation began after a long weekend. . However, prior to that, there have already been calls to extend RFID requirements in anticipation of these issues.
CNN Philippines has reached out to NLEX Corporation for comment.
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