Group hits delays in bidding for LTO’s IT system

MANILA, Philippines - Labor party-list group Anakpawis criticized the Department of Transportation and Communications (DOTC) recently for the repeated delays in the public bidding for the P8.2-billion project to set up a new information technology infrastructure and database for the Land Transportation Office (LTO).

Anakpawis party-list Rep. Joel Maglungsod said the delays favor Stradcom Corp., the LTO’s current computerization contractor, since the firm could get an extension of its contract once it expires in February 2013.

Maglungsod opposed the contract extension, saying Stradcom has been involved in numerous controversies since it started serving the LTO in 2003. “They have already earned a lot in the past several years. And they have been involved in a lot of anomalies. They should be replaced, and not extended,” Maglungsod told The STAR.

Stradcom reportedly earns P2 billion per year from processing LTO transactions, he said.

DOTC Secretary Joseph Abaya, on the other hand, said the delay in the bidding stemmed from an injunction issued by a Quezon City regional trial court in response to a petition filed by Amalgamated Motors Philippines Inc., which supplies drivers’ licenses to the LTO.

The Court of Appeals issued a ruling last month nullifying the lower court’s injunctions and clearing the way for a public bidding.

Once Stradcom’s deal expires, it will retain ownership of all computers and storage facilities used by the LTO.

Under the new contract, the winning bidder must deliver 3,000 desktop computers, along with legally licensed software, to all LTO offices nationwide. The government will keep all the purchased equipment and software.