Stradcom: Plunder raps 'baseless'

MANILA, Philippines –  Stradcom Corp. described yesterday as “utterly baseless” a plunder complaint filed before the Department of Justice by a road users’ group over the firm’s collection of P2 billion in interconnectivity fees as the information technology provider of the Land Transportation Office (LTO).

“The operations covered by the interconnectivity fees were only added to Stradcom’s services upon the directive of the LTO and at a minimal cost to the public. The add-ons were designed to further increase the efficiency of the LTO,” said Stradcom spokesperson Margaux Salcedo.

According to Salcedo, the interconnectivity fees are for operations beyond the scope of the primary contract entered into by Stradcom and the LTO for the computerization of the processing of drivers’ licenses and motor vehicle registration.

“Stradcom does not charge interconnectivity services from the public, but from the private offices requiring interconnectivity like insurance companies that are required to be connected to LTO. It is the insurance companies that are billed, not the vehicle owners or the motoring public,” she said.

Salcedo said the benefits of interconnectivity far outweigh the costs.

She said the company has also been operating without payment since September 2010, noting that the company has been advancing operating costs if only to ensure continuous services to the public, despite the LTO’s failure to pay.

She said the Department of Transportation and Communications and the LTO itself required the LTO interconnectivity projects to address past problems, such as the proliferation of fake third-party liability insurance policies and bogus certificates of emission compliance.