Contractor in LTO infrastructure project denies anomaly

MANILA, Philippines — The German contractor in the multibillion-peso infrastructure project of the Land Transportation Office (LTO) has denied any irregularity and anomaly.

In a statement, the Dermalog Identification Systems denied there were irregularities in the delivery of the P3.19-billion road project awarded in May last year. 

Its legal counsel, Ingwar Grueneisen, said the project execution is still ongoing and that it is on pilot implementation.

The road contract was awarded to a joint venture between the Hamburg, Germany-based Dermalog, Holy Family Printing Corp., Microgenesis and Verzontal Builders Inc. 

But several civic groups, led by Bayan Makulay Foundation, called on the House transportation committee to investigate the alleged irregularities in the LTO contract.

They alleged that the foreign and local suppliers failed to comply with the agreed delivery of goods and services stipulated in the contract even if they already received P1 billion in payments. 

Earlier, Dermalog was also a respondent to a complaint filed before the Office of the Ombudsman over the driver’s license card program. The complainants alleged that there were anomalies in the awarding of a P830-million contract to Nextix, Dermalog and CFP Joint Venture for the supply of 8,360,000 pieces of driver’s license cards with five-year validity.