LTO’s P8.2-billion IT system overhaul to push through — DOTC

The Department of Transportation and Communications’ P8.2-billion procurement project for a new information technology system for the Land Transportation Office will push through, after the Court of Appeals overturned an earlier court ruling that prevented the DOTC from replacing the office’s current system. In its 19-page decision, the appellate court’s 17th Division junked the preliminary injunctions issued by Judge Afable Cajigal of Quezon City Regional Trial Court Branch 96 in favor of Amalgamated Motors Philippines Inc. (AMPI) and Realtime Data Management Services Inc. (RDMSI). The CA said that the companies, which both sought to halt the bidding process, have “no clear legal rights” to request the injunctions. On May 25, 2010, the LTO Bids and Awards Committee (LTO-BAC) announced the bidding for the supply and delivery of driver’s license cards. AMPI and RDMSI bought bid documents for the project. However, the LTO-BAC deferred the procurement when then-Transportation Secretary Jose de Jesus ordered a comprehensive review of the project’s terms of reference. The project was later suspended, and De Jesus ordered the creation of a DOTC Special BAC to handle the bidding for the project. The DOTC-SBAC issued a new invitation to bid on December 24, 2010.   RDMSI went to court, questioning the legality of the issuance, and was granted a temporary restraining order.   In 2011, the DOTC created a Primary BAC and a Secondary BAC, with the former handling procurements exceeding P50 million, including the LTO-IT project, a more comprehensive automation program that includes the Driver’s License Project.   It was AMPI’s turn to go to court to seek for an injunction, and got it on June 1.   In response, the Office of the Solicitor General filed for a petition for certiorari before the appellate court on June 14, arguing that the two companies, being merely merely bidders, failed to establish their legal right to ask for injunctions. The Court agreed with the OSG. The contract of Stradcom Corp., which held the concession for the LTO's IT system for 13 years, is due to expire in February. The system is no longer able to meet current land transportation regulation requirements, said the DOTC. “The new LTO-IT system, once in place, will make it easier for authorities to access relevant vehicle information especially in tracing stolen vehicles,” the agency said.  The DOTC also said that a new system will also address current issues, such as the problem of key data like vehicle registration being handled by a third-party provider. — BM, GMA News