Unnecessary fees

As it turns out, many of the Land Transportation Office fees being paid by vehicle owners and drivers could have been avoided had the LTO simply done its job.

As early as 2023, the LTO announced that it will continue to use its old information technology system developed by Stradcom Corp. instead of the Land Transportation Management System or LTMS because the latter has had persistent performance issues.

The LTMS, an online portal of LTO developed together with German IT company Dermalog, was supposed to facilitate vehicle registration and license applications electronically instead of having to physically go to LTO offices.

The successful operation of the LTMS was supposed to be a joint effort of the LTO and Dermalog. But observers say that LTO has chosen to blame Dermalog solely for the problems that have prevented the full utilization of the system without even identifying the problem areas.

And because the LTMS has not been fully functional, the LTO has allowed its personnel to continue using the old IT system.

Unfortunately, it is the public that has been unfairly shouldering the expenses for LTO’s failure to spearhead the resolution of these problems.

The success of LTMS lies on the collaborative efforts of Dermalog and LTO’s Management Information Division (MID), which is the key implementing and supporting division inside LTO for meeting LTMS goals.

Not many people know that Dermalog’s responsibilities are limited to the following: primary support for 24 pilot sites and second line support for all other 380 LTO sites from acceptance date of August 2019 onwards as well as main support for all centralized servers including but not limited to: database, apps, and web servers and the seven core application software modules.

On the other hand, LTO through its MID is responsible for first line support for all other existing 380 LTO sites including network equipment, internet connectivity, computer workstations and laptops, all exam PCs for LTO Education Centers, LTO Help Desk Center with over 50 personnel, and support and maintenance of all hardware and software items that are not the contractual obligations of Dermalog.

Thus, the primary responsibility in determining the success of this LTMS project lies clearly with the head of the LTO.

The Commission on Audit has asked the LTO to set a definite deadline for a full nationwide rollout of the LTMS after delays led to P438.7 million in avoidable IT fees last year.

In its report, COA flagged LTO for continuing to collect computer IT fees from Filipino motorists  through the old Stradcom IT system even though seven core applications of the LTMS have already been accepted.

As a result, the public continued to pay the computer IT fees associated with the old Stracom system, expenses which could have been avoided had the LTMS been fully functioning and utilized by LTO offices nationwide.

Based on the LTO’s list of rates, clients under the old IT system were charged P67.63 for every driver’s licensing system, ADLES or additional driver’s license, and traffic adjudication system, and P169.06 for every motor vehicle inspection and registration system and manufacturers, assemblers, importers, rebuilders, and/or dealers transaction.

Had these transactions been processed under the LTMS, then these charges could have been avoided, as the LTMS does not require payment of fees.

Observers noted that instead of focusing on addressing the urgent needs of LTMS, the LTO has allowed the indefinite use of a parallel IT System. Thus, there have been two separate IT systems managing data involving millions of motorists.

These gaps in the system have reportedly also led to the proliferation of no show services, irregular transactions, even the successful registration of two illegally smuggled Bugatti Chirons, which were not registered in Dermalog’s online portal.

The Federated Land Transport Organizations earlier urged the Department of Transportation to implement the full utilization of the LTMS as a way to curb questionable vehicle registrations. It said that the LTO’s old system may have facilitated these.

With Dermalog’s contract reportedly expiring in December, we learned that one of those interested to bid will propose the use of the LTMS for two more years since the system works anyway.

There have also been earlier reports that LTO wants to fully takeover the LTMS from Dermalog, as the agency said that its personnel can maintain and operate it better.

If that’s the case, why not help Dermalog fix the problems if there are really any?

Filipinos want to be entrepreneurs

Most Filipinos aspire to manage their own businesses.

A survey by OCTA Research showed that 78 percent of the respondents wanted to become entrepreneurs to manage their own time and schedules.

Meanwhile, the Department of Economy, Planning and Development’s  “Ambisyon Natin 2040” report found that 47 percent of Filipinos preferred to be employers in their own family-operated businesses, while 22 percent wanted to be self-employed without any paid employees.

Zofia Canlas of party-list group Batang Quiapo, who is an online seller and a marketing expert, said the survey results indicate a strong desire among Filipinos to own and operate their own businesses, driven by motivations such as flexibility, financial stability and entrepreneurship.

Canlas stressed the need to support Filipino entrepreneurs with microfinancing, which provides small loans, savings, and other financial products to low-income individuals or entrepreneurs lacking access to traditional banking services. This promotes financial inclusion and supports self-sustaining economic development, she said.

Microfinancing would benefit low-income entrepreneurs such as small business owners, vendors, traders, women facing barriers to financial services, and rural communities with limited access to traditional banking, the party-list said, adding that overall, microfinancing can be a valuable tool for promoting economic development and financial inclusion.

Canlas pointed out that micro, small and medium enterprises (MSMEs) need microfinancing due to various challenges, including limited access to traditional financing. She said that MSMEs often struggle to secure loans from banks due to lack of collateral, credit history, or financial records.

Batang Quiapo has been advocating for microfinancing through “Loan Puhunan,” a microfinancing initiative for vendors and other microentrepreneurs.

The group said that it plans to push laws combating unfair rental fee increases, protecting street vendors from evictions, facilitating dialogue between vendors and market authorities, and establishing cooperatives for mutual support, giving legal recognition to informal vendors, subsidized training programs, micro-financing support and the establishment of organized markets, among others.

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