LTO execs may face graft raps in P500-million license bidding

MANILA, Philippines - Land Transportation Office (LTO) officials could face graft, and technical malversation charges if they continue with the last minute bidding for the P500-million driver’s license production and supply contract.

Several entities interested in the P500-million contract have raised questions regarding the purported midnight deal, especially after it was discovered that the project does not yet have an approved funding in the national budget.

The irregularity was raised during the pre-bid conference held last Friday, June 4, at the Bulwagang Edu at the LTO main office along East Avenue in Quezon City.

According to Section 7 of Republic Act 9184, the Government Procurement Act, no government procurement shall be undertaken unless it is in accordance with the approved Annual Procurement Plan of the procuring agency.

The law further states that the Approved Budget of the Contract (ABC) must be at all times consistent with the duly appropriated budget as contained in the General Appropriations Act for that year.

Because of this provision, no public bidding can be undertaken without the approved source of funding in the national budget.

However, it was noted that the LTO Driver’s License bid for the production of cards in 2011 could not yet be bid out since the 2011 national government budget has not even been prepared yet. Only the 2010 budget has been approved.

The National Expenditure Program for 2011, which is the national government proposed budget, will only be submitted after the new President delivers his State of the Nation Address in July when the new Congress opens.

“How can the LTO open the bid for a project that has no budget yet?” asked one of the bidders during the Pre-Bid Conference. LTO officials present at the conference did not answer this query.

When asked if they knew that there was no budget yet appropriated for the production of driver’s licenses for 2011, LTO pre-bid officials answered that the project still needs an approved 2011 budget.

“This bid is clearly illegal and should not continue,” said one of the bidders who requested anonymity. “We do not know why LTO is fast-tracking this bid when the next administration should have the authority and responsibility to bid out this contract under the law,” added another bidder.

Concerns have been raised about the LTO’s fast-tracking of the bid in favor of a preferred bidder who, some sources claim, is the LTO’s current Driver’s License card supplier Amalgamated Motors Inc. or AMPI.

The company has allegedly forged a deal with another company, which has exclusive rights over the card printers and other technical descriptions that fit only one manufacturer in the world.