By Alexandria San Juan
The Land Transportation Franchising and Regulatory Board (LTFRB) warned the public not to engage with transport firm Yellowdot Transport Terminal Inc. offering investment contracts to modernize jeepneys without a license from the Securities and Exchange Commission (SEC).
In a notice released on Thursday, the LTFRB said officials from Yellowdot were summoned to explain reported incidents of an investment scheme to the public through purchasing and managing “Millennial Jeeps” without due license from the SEC.
This was confirmed by officials of Yellowdot in a meeting explaining that under the scheme, they require a down payment of P250,000 for a public utility vehicle unit (PUV) pursuant to the government’s modernization program.
The company also promised a high return of investment amounting to P55,000 to P85,000 a month.
“The investing public is therefore warned not to accept offer or solicitation of this type of investment from Yellowdot,” the notice signed by LTFRB Chairman Martin Delgra III reads.
It also stated that the remaining balance for each unit, estimated to be at P1.95 million, will be financed through a car loan, and the registration and ownership will be transferred to the investor upon full payment of the loan.
In the same notice, the LTFRB has ordered Yellowdot to “cease and desist from offering such investment scheme to the investing public, until they comply with existing laws and regulations.”