LTO: No need for NEDA approval for LTO's RFID project

MANILA, Philippines - The radio frequency identification (RFID) project of the Land Transportation Office (LTO) does not need the approval of the National Economic and Development Authority (NEDA), LTO executive director Jimmy Pesigan said yesterday.

“The project, being an upgrade or enhancement for existing motor vehicle registration, does not require NEDA-ICC (investment coordinating committee) approval under the guidelines for build-operate-transfer IT (information technology) projects,” he said in a statement.

“This project was conceptualized way back in 2007 and has undergone rigorous and comprehensive review and deliberation within the LTO and DOTC (Department of Transportation and Communications),” he said.

Pesigan said the RFID plan would benefit motorists throughout the country “due to its ability to eradicate colorum vehicles on the streets, enhance law enforcement on the road as well as traffic management, and reduce air pollution by ensuring compliance with emissions testing.”

“Aside from making vehicle registration more efficient, the RFID is also expected to serve as a deterrent to car theft in the long run,” he added.

Pesigan pointed out that LTO officials are willing to sit down with NEDA representatives to “explain our position so that we can work together to implement this very worthwhile project.”

During the deliberations on the proposed 2010 budget in the House of Representatives two weeks ago, NEDA Director General Augusto Santos said LTO’s RFID was illegal as it was not approved by NEDA-ICC as required by regulations for such projects.

Santos confirmed the statement of his predecessor, former economic planning secretary Ralph Recto, that NEDA did not pass on the RFID plan as to its necessity and reasonableness of the fee that the public would have to shoulder because it was not submitted to the agency.

He gave the confirmation in answer to questions raised by Agusan del Sur Rep. Rodolfo Plaza, who vowed to question the RFID project even before the courts.

Also in response to Plaza, Santos said if NEDA approves the RFID plan, LTO would have to conduct a public bidding for the supply of the chips.

The agency cannot negotiate with and give the multibillion-peso contract to a favored supplier, he said.

Plaza said LTO chief Arturo Lomibao wants to punish all motor vehicle owners for his agency’s failure to flush out unregistered vehicles and unauthorized public utility jeepneys and buses.

He said Lomibao would make each of the more than five million motor vehicle owners throughout the country pay P350 for his RFID chip just so he and his people could run after violators of transportation and traffic rules.

Under the plan, each vehicle would be required to have two RFID chips – one on its front windshield and one at the back – upon registration or renewal of registration.

The chip would contain information about the vehicle and its owner. LTO plans to give certain law enforcers RFID readers to check on motor vehicles.

This has alarmed many motor vehicle owners and human rights and privacy advocates, who said government agents could use the RFID chip for spying and for harassment and extortion activities.

LTO’s favored chip supplier reportedly stands to make at least P2 billion from the project.

Because of the huge amount involved, Plaza said some LTO officials and their administration backers are obviously out to raise election campaign funds.

“This is a one-for-the-road deal that these corrupt officials and their padrinos in high places are making almost on the eve of the election campaign,” he said.

Because of the controversy it has generated, President Arroyo has ordered Lomibao to shelve his RFID project for further study.

Lomibao, however, has expressed determination to push through with his “spy” chip plan.