LTO woes, version 2.0

When it was first floated, then confirmed, that lawyer/businessman “Jay Art” Tugade was the new assistant secretary-LTO chief, I had my suspicions and my doubts about the appointment, given that Atty. Tugade is the son of the former secretary of DOTr and the general suspicion at the time was that he was being appointed to settle unfinished business and cover his father’s back after the latter’s exit.

I expressed the public concerns in a column once and then I decided to move on to issues of greater concern, such as Filipinos going hungry due to our failed agriculture industry and farmers essentially down-sizing to just feed their families. Even when people were sending me copies of the recently minted Vintage Vehicle Registration law and its IRR, they could not get me excited.

Fact is, I already sold 99 percent of all my old cars either as scrap, junk or unfinished projects. I simply got fed up with promises from LTO officials in the past that the law or an administrative order would be passed. As I suspected, the new law may give legal basis for registration of old and undocumented cars, but truth is it is actually riddled with requirements and red tape.

Meanwhile, I have indirectly been apprised by several LTO insiders that Asec. Jay Art Tugade was “OK,” “focused on getting things done,” had pushed hard for setting up the new system for computerization of the LTO and that “he listens to his people” and adopts policies and suggestions that are in the interest of the public and the LTO. Fair is fair. If people I trust and who have no agenda actually speak well of him, then that should also be given space in this column.

Unfortunately, there are things in the way of Asec. Jay Art Tugade in the form of advisers and consultants at the head office of DOTr. Several of my trusted sources have been sounding me off that there are problems at the LTO that lead to the title “LTO woes, version 2.0” or a replay of disastrous things done in the past namely:

• Cap of P50 million on the procurement capability of agencies under the DOTr such as the LTO.

•Centralization of administrative matters to the DOTr.

•Appointments/replacement of regional directors.

All three have been done or attempted in the past with disastrous results. According to two informants: “The DOTr issued a Memorandum to Asec. Tugade limiting the procurement capability of LTO to 50 million, thereby centralizing the procurement of major projects of LTO to DOTr. However, during the term of Asec. Guadiz, the predecessor of Asec. Tugade, the procurement limit given by the DOTr to LTO is one billion (pesos).”

Rumors have it that Asec. Tugade is considered an outsider in the leadership circle of DOTr, many of whom had someone else in mind. Another speculation is that “the anti-STRADCOM moves of Asec. Tugade earned the ire of some people surrounding Secretary Jimmy Bautista. “Assec. Tugade has rolled out the full digitalization of LTO including online registration renewals, putting the STRADCOM system out of commission.

“But more than the intramurals, this move by the DOTr is version 2.0 of the DOTr administration under sec. Abaya, who limited LTO bidding authority in his effort to curb alleged corruption in the procurement process of attached agencies of the then DOTC. It wreaked havoc, it resulted in perilous delays in the rollout of big-ticket projects. In fact, the LTO IT modernization program, while fully funded and in the pipeline, was not rolled out. Procurement of car plates and driver’s licenses were also partly affected. And this is for LTO alone. Not to be missed are the airports and ports that were not built or not finished on time.”

Centralization, while good on paper, has historically caused serious delays, politics and corruption as well. The DOTr consultants may end up merely channeling the pork, the projects as well as corruption on the ground and raising it up to the DOTr.

The centralization of administrative functions is yet another power trip and form of control and placing allies in vacancies. By centralizing administrative functions, “the DOTr removes from the LTO management the power and authority to hire, promote and even fire employees. Deliberation for promotion of LTO chiefs and division chiefs was previously downloaded to LTO, resulting in faster promotions and hiring people to fill up plantilla positions.”

I personally know of several LTO officials and personnel whose promotions were held up for six months to a year at the DOTC and DOTr in the past. With centralization, LTO chiefs can’t immediately issue job orders or job-outs to relieve seasonal surges and build-up of registrations and licenses.

If those two actions are not bad news enough, well, here is “Strike 3” for the DOTr. Several LTO regional directors and “commercial” section chiefs such as “new registrations” of commercial vehicles, volume registration of new cars, etc., all stand to lose their current positions and end up floating around the LTO head office on East Avenue or regional offices all over the country.

Once again retired generals have their eye on what they see can become lucrative positions or postings that can be used to generate sidelines and income. I know generals who have benefitted directly or indirectly from being posted at the LTO in various positions.  Manufacturers, fleet owners, driving school owners, vehicle emissions testing centers and investors for LTO offices all want or have use for a retiree-cum-fixer at the LTO. If they are too old for the AFP and the PNP, why let them in at the DOTr?

Why punish career civil service eligible LTO officials for retired generals who have served long enough and only want the extra racket? Tama Na – Sobra Na!

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