Transport group questions LTO computerization contract extension

MANILA, Philippines - The militant transport group Pagkakaisa ng mga Samahan ng Tsuper at Opereytors Nationwide (Piston) questioned yesterday the alleged extended contract given by Land Transportation Office (LTO) to computerization contractor Stradcom Corp.

According to Piston secretary general George San Mateo, Stradcom’s contract with the LTO was supposed to end this year but the LTO has allegedly extended it until 2013.

San Mateo said that the extension was worth looking into by Congress or the next administration, since the extension was made during the time of President Arroyo.

San Mateo said the LTO’s alleged preferential treatment of Stradcom was puzzling since the information technology firm has reportedly been deficient in computerizing the agency’s processes for motor vehicle registration and driver’s license issuance.

Piston noted that Stradcom has been serving the LTO for 10 years, collecting billions of pesos in computer fees since it started its computerization of the LTO’s system after bagging the contract in 1998.

Stradcom charges a P169 computer fee for every transaction for its computerization of the LTO IT system.

San Mateo alleged that Stradcom pushed for the LTO’s radiofrequency identification (RFID) project to prevent the end of its computerization contract with LTO.

He said that based on Stradcom’s RFID proposal, the database reader for the project is due to arrive in October, but the agency started last Jan. 2 collecting RFID and computerization fees from each vehicle owner seeking to renew their vehicle registration.

The Supreme Court has since suspended the collection of RFID and computerization fees pending a complaint filed by Piston, but the LTO said it will not refund the fees because there has been no express order for it to do so. – Rainier Allan Ronda