The Commission on Audit (COA) said the Land Transportation Office (LTO) incurred P438.7 million ($7.6 million) in computer information technology (IT) fees.
The COA said a fully functional and utilized Land Transportation Management System (LTMS) across all agency offices should have covered these needs.
“The Land Transportation Management System (LTMS) was still not being fully utilized nationwide and was still in parallel use with the old IT system as at Dec. 31, 2024 despite the acceptance of the seven core applications, due to the existing issues and problems in the functions/processes of the system,” the COA said in a report.
The audit body said this resulted in the non-maximization of the benefits expected from the project and imposed an additional financial burden on the public, who had to pay computer IT fees charged by Stradcom Corp. from Jan. 1 to Dec. 31, 2024 amounting to P438,785,773.61.
These fees, the COA said, could have been avoided if the LTMS had been fully operational and utilized by LTO offices nationwide.
It recommended that the LTO collaborate closely with Dermalog Identification System GMBH to resolve ongoing issues with the LTMS.
The COA’s report also urged the LTO to finalize an agreement with Dermalog that includes a clear timeline for the complete delivery of all essential functions and features of the seven core applications, along with potential penalties for non-compliance.
The seven core applications include the Portal; Online Appointment and Application System (OAAS); Driver’s Licensing System (DLS); Revenue Collection System (RCS); Law Enforcement and Traffic Adjudication System (LETAS); Motor Vehicle Inspection and Registration System (MVIRS); and Executive Information System (EIS).
The COA recommends establishing a specific deadline for the full implementation of the LTMS across all LTO regional and district offices nationwide.
The audit body issued its report because the LTO’s IT system is not yet fully operational nationwide, mainly due to continuing problems with the LTMS. The LTO has had to keep using its old IT system in some areas and situations.
“This resulted in additional burden and expense for the transacting public as they had to pay for computer IT fees which should have not been the case had the transaction been processed under the LTMS,” the COA said.
Under the old IT system, a client pays P67.63 for every DLS, ADLES and LETAS transaction, while P169.06 is charged for every MVIRS and Manufacturers, Assemblers, Importers, Rebuilders and/or Dealers (MAIRDS) transaction.
Some P2,598,804,306.80, representing 82.58 percent of the total contract cost, had been paid to Dermalog for the LTMS project for the seven core applications as of Dec. 31, 2024, records showed.
