MANILA, Philippines – A bus operators’ group leader believes that former Metropolitan Manila Development Authority (MMDA) chairman Bayani Fernando benefitted from the “payola system” in the transport sector.

Homer Mercado, president of the South Luzon Bus Operators Association (Soluboa), said the payola system started when Fernando took over the MMDA leadership.

Mercado said bus operators started giving payola to MMDA personnel 3 to 5 years ago when it started imposing more stringent rules covering franchises.

He added that even legitimate bus operators are forced to pay payola because some enforcers can actually invent violations against.

Once this happens, their buses get impounded for at least a week which means, a lost of profit for the operator.

In an interview on ABS-CBN’s morning show, “Umagang Kay Ganda,” Fernando denied that he knew about the existing payola system.

"Wala akong nalalaman kasi kung may nalalaman ako hindi ko papayagan iyon," Fernando told ABS-CBN's morning show, "Umagang Kay Ganda" during a phonepatch interview.

The former MMDA chief, who is currently in Taiwan, said that during he had been very strict on erring passenger buses.

"Galit nga yata sa akina ang mga bus eh. Hindi ko nga malaman kung bakit sinasabing may payola," he said.

Meanwhile, Mercado said that members of the Soluboa will try to meet with new MMDA Chairman Francis Tolentino on Friday to divulge everything they know about the existing “payola system” in the transport sector.

He said that they are ready to give the names of the MMDA officials and personnel who receive payola, as well as give details on the mechanism by which it happens.

Tolentino on Thursday revealed that several bus companies have been paying monthly payolas to traffic enforcers.

Tolentino said the traffic enforcers could have been part of a group within the MMDA that collects protection money from bus companies and several public transport groups all over Metro Manila.

Among those initially identified by Tolentino as "kotong buses" were the Baliwag Transit, Five Star Liner and St. Rose Bus Lines.

The new MMDA chief revealed that the Baliwag Transit gives a group of MMDA traffic enforcers P20,000 month while the Five Star Lines and the St. Rose Bus Lines gives monthly payola of P30,000 and P20,000, respectively. -- Report from Zen Hernandez, ABS-CBN News