LTO told: Refund P30 million in RFID fees

MANILA, Philippines - The Land Transportation Office (LTO) was urged yesterday to immediately refund P30 million in fees it has collected for radio frequency identification (RFID) stickers.

Bayan Muna Rep. Satur Ocampo and former senator Ralph Recto made the appeal in the wake of reports that the agency was still “mulling” whether to return the money to motor vehicle owners who have already registered their vehicles and paid the RFID fees.

Ocampo warned LTO chief Arturo Lomibao that he could be cited in contempt of the Supreme Court for disobeying its order for the refund of the fees.

The Bayan Muna lawmaker is one of the petitioners in the case against the RFID project pending with the high tribunal. The court has temporarily stopped the project.

By its own admission, the LTO has already collected some P30 million from 90,000 motor vehicle owners for the RFID stickers, which cost P350 each.

Recto, President Arroyo’s former economic planning secretary, said Lomibao should order the return of the money because there was no service rendered to the 90,000 motor vehicle owners who paid the fees.

He reminded LTO officials that from the start, he has been warning them that their RFID project “did not go through the legal process, particularly subjecting it to review by the National Economic and Development Authority (NEDA).”

Recto urged the “outgoing administration” to abandon the multi-billion-peso scheme that LTO officials claim is intended to flush out illegal vehicles and traffic violators.

“There will always be something suspicious in anything done in haste. Let us not saddle the next administration with midnight deals agreed upon under the table. What our new leaders deserve is a fresh start,” he said.

He added that the opposition to the RFID project “has been overwhelming and I don’t think those who believe this is illegal or unconstitutional would relent.”

LTO has awarded the RFID contract to Stradcom Corp., its computerization contractor.

Ocampo and his Bayan Muna colleagues claim the contract is illegal since it did not go through the required public bidding and NEDA review and approval.

They are planning to file graft charges against Lomibao for starting the collection of P350 from motor vehicle owners for RFID stickers.

They said even if the contract was legal, there was no basis to immediately collect RFID fees since Lomibao himself had admitted that the system would be operational in October or November yet.

Why collect tens of millions in fees for a service that is still not available? they asked.

They said if the huge amount of collections were deposited in a bank, it would earn millions that could go to the pockets of corrupt LTO officials.

SC order hailed

Meanwhile, various public transport and private business groups hailed the SC’s issuance of a temporary restraining order on the Department of Transportation and Communications’ controversial move to install RFID tags on all motor vehicles in the country.

Manolo Labor, secretary general of the Motorcycle Development Program Participants Association (MDPPA), said they welcomed the SC order since it would temporarily stop the implementation of the program.

Labor said the MDPPA – composed of Kawasaki Motors Philippines Corp., MCX Motors Inc., Yamaha Motors Philippines, Inc., Honda Philippines Incorporated, Eastworld Motor Industries Corp., Suzuki Philippines, and Kymco Philippines Inc. – was staunchly against the RFID project.

“We support the court decision on the issue and we also call for a permanent stop on the implementation of the project,” Labor said.

“Again we emphasize that the RFID is a form of double identification for motor vehicles and an additional cost burden for motorcycle owners.” – Jess Diaz, Rainier Allan Ronda