DOTC warned of unnecessary P8-billion expenditure

MANILA, Philippines – The Department of Transportation and Communications (DOTC) will make an unnecessary expenditure of P8 billion if it pushes through with its plan to bid out a new contract for an information technology (IT) systems and services provider for the Land Transportation Office (LTO), said the LTO’s current IT systems and database provider Stradcom Corp.

Margaux Salcedo, Stradcom spokesperson, said the proposal seemed to go against the current thrust of the Aquino administration to aggressively cut down on unnecessary expenditures and enjoin private enterprise to invest in government infrastructure projects under the Private-Public- Partnership (PPP)  program.

Salcedo made the observation as she reiterated the firm’s call urging DOTC officials to study and reconsider first the offer of Stradcom  for a renewed contract before it makes a total and outright rejection of their proposal.

She said that a new contract will waste almost P8 billion worth of taxpayer’s money when the government could keep the LTO computerized Internet connectivity for free.

Salcedo outlined that Stradcom under its proposal will infuse and invest another P2 billion to rehabilitate the existing infrastructure and expand the services of LTO on the areas of online transactions, mobile ticketing, and biometric verification for drug tests.  

On top of this, Stradcom is offering the government an annual  revenue share of P200 million over 10 years as prescribed for a renewed contract.

Despite DOTC assurances that  an IT infrastructure will be in place by the end of Stradcom’s contract on February 2013 , Salcedo cast doubts on the capacity of any over eager  IT firm to construct from scratch a nationwide  IT facility for one of the busiest government agencies in six months time.  

Salcedo cited that it took  Stradcom five years before a Certificate of Acceptance for an IT Facility ( CAIF) was issued by the government.

As it is the case, the government is already set to lose P7.9 billion for a project which they do not have to spend for.

Stradcom Corp. modernized the LTO after it  was awarded the contract for the LTO IT project in 1997 after an open, competitive public bidding.

Stradcom  was evaluated to have offered the most technically viable solution and with the lowest charges  to the transacting public.