LRA terminates IT contract

The Land Registration Authority (LRA) has terminated the contract for its Land Titling Computerization Project after the contractor allegedly failed to start the project five years after it was awarded, according to LRA Administrator Benedicto Ulep.

During a congressional budget hearing, Ulep said the notice of termination had been sent to the Land Registration Systems Inc. (LARES) and that the LRA was preparing for another bidding of the project so that a new contractor could take over.

The LRA awarded the contract for the Land Titling Computerization Project to LARES in May 2000. However, LARES allegedly could not complete even Phase 1 of the project due to lack of funds from investors.

In May 2004, the LRA issued a notice of default to LARES. This was followed by a notice of termination in September 2004 after LARES failed to deliver the first phase of the project by March 2004.  

LARES was given until March 2005 to rectify the cause of default as provided for in the build-own-operate (BOO) contract. But it again allegedly failed to deliver. 

The LRA issued the final notice of termination last March.

LARES, however, has filed a notice of arbitration contesting the contract termination by declaring an event of force majeure.

LARES claimed that its inability to raise money for the project was due to the Commission on Audit’s (COA) suspension of the contract of Stradcom, its sister company, with the Land Transportation Office (LTO).

The LRA legal division, headed by lawyer Ronald Ortile, is now handling the arbitration case filed by LARES.

LARES and Stradcom are both majority-owned by Stradec, which is associated with Cesar Quiambao, erstwhile president and chief operating officer of Citra Metro Manila Tollways Corp.