LTO chief: 1 firm made licenses for 7 years without bidding

MANILA, Philippines - The Land Transportation Office (LTO) has been getting its supply of driver’s licenses from one private firm for the past seven years without benefit of a public bidding, LTO chief Virginia Torres said yesterday.

Torres said the agency is set to hold a bidding for the 2011 driver’s license supply since their current supplier, AMPI or the Amalgamated Motors Philippines, Inc., has been providing licenses for the past years despite the lapse of their contract in 2003.

Torres said this was the reason why she had prioritized the holding of the bidding for the 2011 driver’s license supply contract.

“We need to continue with the bidding because of the long time we have been without a contract for the driver’s license,” Torres said.

She said AMPI has been supplying the driver’s licenses for the past seven years under a “quantum meruit” arrangement. Torres, who has a law degree, said the legal term means “as much as he deserves” and is often used as a basis to continue a service without an agreement or contract.

However, under Republic Act 9184, the government procurement law, a government contract should be the subject of public bidding once it has expired.

Sources said with at least three million motorists renewing their driver’s license every year for P150 each, AMPI may have earned P3.5 billion over the past seven years, and that the firm and LTO officials may be held liable for graft.

The bidding for the 2011 driver’s license supply contract was suspended by Transportation and Communications Secretary Jose de Jesus after potential bidders complained the specifications set by LTO seemed to favor a particular bidder.