LTO’s IT service provider to stop operations

MANILA, Philippines - The IT service provider of the Land Transportation Office (LTO) will be forced to stop operations after the Bureau of Internal Revenue (BIR) has issued a garnishment order against the company.

On July 31, the BIR issued a warrant of distraint/levy against Stradcom Corp., effectively garnishing its accounts.

The BIR garnished the accounts of Stradcom for allegedly failing to settle its P317 million tax obligations for tax year 2011, excluding surcharges and interest due.

In a letter to Transportation and Communications Secretary Joseph Emilio Abaya, Stradcom president Cezar Quiambao said the company would stop its operations starting Monday because of a warrant of distraint issued by the BIR.

Quiambao served a notice of force majeure “by virtue of the issuance and service of such BIR warrant… as our ability to operate is even further crippled.”

Quiambao said the LTO has yet to pay Stradcom over P4 billion fees for almost three years.

For Stradcom to pay the P317 million tax liability, the firm said it should receive P2.2 billion in payments from out of the escrow funds that are under the control of the LTO.

Meanwhile, Sen. Ramon Revilla Jr. is seeking a review of the P3.85-billion motor vehicle plate standardization program of the DOTC and LTO amid a complaint by a disqualified bidder.

Revilla, chairman of the Senate committee on public services, wants the project scrutinized, citing reports of irregularities in its implementation.

He said he received reports that one of the two qualified bidders has been blacklisted by the LTO front printing and distributing illegal license plates. – Lawrence Agcaoili, Christina Mendez