Vigor Mendoza II was reinstated by virtue of an Administrative Order signed by President Estrada, himself. Records showed that Mendoza was dismissed on Nov. 23, 1999 by Malacañang on the recommendation of the Presidential Commission Against Graft and Corruption (PCAGC).
PCAGC made the recommendation on the complaint of Isagani Reyes that Mendoza virtually lifted a moratorium on new franchises when he issued a memorandum dated Oct. 29, 1998.
The memorandum ordered the LTFRB’s Technical and Legal Division to receive all applications for public utility bus franchises and set for hearing all pending cases, contrary to the board’s existing moratorium. But sources at the LTFRB revealed that Mendoza was sacked because he stepped on the toes of Ilocos Sur Gov. Luis "Chavit" Singson when the latter was still a close ally of Mr. Estrada.
Singson, through his bus company, Partas Lines, allegedly wanted to take over the abandoned lines of City Transport in the Baguio to Manila and Pangasinan to Manila routes.
Mendoza allegedly opposed this because the same routes were also being claimed by bus firm RRCG by virtue of an execution sale where they were the highest bidder. – Sheila Crisostomo