LTO chief open to calls for deferment of Radio Frequency Identification

SAN FABIAN, Pangasinan, Philippines – Land Transportation Office (LTO) chief Arturo Lomibao said yesterday that the agency is open to the deferment of the implementation of controversial Radio Frequency Identification (RFID) over concerns of the public.

He said there may be opposition from some sectors but there are also those who favor its implementation because they realize it is good for the country, good for the public, good for public safety and good for vehicle security.

He said he sees no problem if it will be deferred and will give in to what the secretary of the Department of Transportation and Communication (DOTC) tells them to do.

“This (RFID) is going to help us in terms of anti- criminal activities. This is the best tool for traffic enforcement,” he added.

He denied that the project is part of a midnight deal.

Lomibao said he finds it malicious that the money that would be generated by the RFID implementation will be used for something else.

He claimed that consultations were made with the concerned sectors and that most of the transport groups support it.

“But nevertheless I think there’s a call by some sectors that it be deferred and that more consultations will be needed,” he told local newsmen here last Thursday night. Lomibao is reportedly planning to run for a congressional seat in Pangasinan.

Meanwhile, three members of the House of Representatives vowed to block the implementation of the RFID.

Agusan del Sur Rep. Rodolfo Plaza said he would question the project before the courts.

“There is nothing in the contract between LTO and Stradcom (the agency’s computerization contractor) that provides for this costly spy chip,” he said.

Under the LTO plan, the RFID chips would be installed on every motor vehicle, whether for private or public use. Each chip, which would contain information about the vehicle, including its owner, would cost P350.

Party-list Rep. Teodoro Casiño of Bayan Muna said the RFID contract between LTO and Stradcom could be a midnight deal intended to benefit some people planning to run for public office in the 2010 elections.

Rep. Liza Maza of the party-list group Gabriela filed Resolution 1429 asking the House to investigate the new LTO project.

The Philippine National Police (PNP) expressed belief that the RFID could help in the government’s campaign against car theft. The Highway Patrol Group (HPG) will coordinate with the LTO.

Ex-NEDA chief says RFID is illegal

Former Socio-economic Planning Secretary Ralph Recto disclosed that the RFID project of the LTO is illegal because it did not go through the evaluation process of the National Economic and Development Authority (NEDA) as required by law.

Recto said in a statement that the implementation of the RFID should be deferred because it does not have NEDA clearance.

Recto said any increase in fees and charges collected by the government should go through the NEDA for evaluation to determine if the system is reasonable.

He cited Memorandum Circular 137-2007, issued by the Office of the President, which requires all heads of national government agencies, including government owned or controlled corporations, to seek prior clearance from the NEDA Board before imposing new fees or increasing old ones.

Recto said motorists would be required to pay an additional fee of P350 for the RFID upon registration of their vehicles.

“Six million vehicles will be required to pay higher fees on vehicle registration yearly, and 100,000 to 150,000 new vehicles are registered yearly. Millions of citizens will be affected by the new fees, which further highlight the need for it to undergo the proper process,” the former Senator said.

Recto said that if the project has its merits and is imbued with public interest, there should be no problem subjecting it to the process.

“The LTO cannot just ram through the project without the consent of the NEDA Board, which is chaired by President Arroyo,” said Recto.

“In effect,whoever is implementing the project must be powerful enough to have the guts to bypass the President,” he added.

Private firm Stradcom is the contractor for the proposed RFID system and several other multibillion projects with government agencies, such as the proposed national identification project of the Social Security System (SSS) and the mandatory vehicle insurance project of the LTO.

Recto said NEDA Circular 01-2008 is guided by the principle that fees and charges entail costs to the public as well as affect the cost of doing business in the country, so the evaluation of new or increased fees/charges needs to be coordinated with all the stakeholders.–With Marvin Sy, Iris Gonzales, Jess Diaz, Cecile Suerte Felipe, Christina Mendez, Perseus Echeminada, Rainier Allan Ronda