It concerns one of the fees being passed onto motorists.
On Tuesday, August 18, the Office of the Ombudsman issued a six-month preventive suspension orders, without pay, to former Land Transportation Office (LTO) chiefs Vigor Mendoza II and Teofilo Guadiz III.
Mendoza is now Chairman of the Land Transportation Franchising and Regulatory Board (LTFRB), while Guadiz is the Chairperson of the Office of Transportation Cooperatives (OTC).
This order is immediately executory and will remain in effect during the pendency of the administrative case against them and was done to preserve documents and evidence that may be under the control or custody of the respondents, as well as to prevent the possible commission of other actions in their office.
According to a statement made by the Constitutional body, which is currently headed by Omb. Jesus Crispin Remulla, both officials continued the use of the STRADCOM-operated LTO information technology system, which resulted in an additional PHP13.3 billion in computer fees incurred by motorists from 2019 to 2025.
That is despite the government’s implementation and acceptance of its replacement, the Land Transportation Management System or LTMS.
The Ombudsman said that it found “sufficient grounds” to suspend Mendoza and Guadiz, citing strong evidence showing their guilt in the administrative charges for Grave Misconduct and Conduct Prejudicial to the Best Interest of the Service.
“The continued utilization of the LTO IT System by GUADIZ and MENDOZA demonstrates a patent disregard of established government policy and prior official directives intended to transition LTO operations to the LTMS,” the ruling said.
The said directive also cited that the Commission on Audit (COA) flagged the continued parallel use of the two systems resulted in the “non-maximization of the benefits” expected from the LTMS project.
Thus, COA found that this caused an “additional burden and expense for the transacting public” due to computer fees charged by STRADCOM
It was 1998 when th government and STRADCOM entered into a Build-Own-Operate Agreement which covered the establishment and operation of computer systems and other infrastructure used to process LTO transactions nationwide.
That was later followed by a Final Certificate of Acceptance was issued by then the the Department of Transportation and Communications (DOTC), the current Department of Transportation (DOTr), in 2003 with the original 10-year concession period expiring in 2013 and has since been extended on a month-to-month basis.
In 2016, the LTO and STRADCOM entered into a Phase Out Agreement allowing the arrangement to continue while the LTO had no new or replacement IT system that was fully operational nationwide.
Two years after that, in 2018, the government contracted a joint venture led by Dermalog Identification Systems GmbH for the development and delivery of the LTMS, with the Proejct Completion and Final Acceptance Certification having been issued by the LTO in 2021.
The LTMS is now the government’s principal platform for motor vehicle registration, licensing and related transportation transactions, with LTO operations directed to gradually transition away from the STRADCOM-operated system.
However, the Ombudsman found that during Guadiz’s term in 2022, he “pushed for the continued use of the LTO IT System” and “favored STRADCOM,” quoting Guadiz staring that “the old IT System provides a better solution”.
In 2023, during his term as LTO Chief, the Ombudsman found that Mendoza issued several memoranda “effectively reviving and institutionalizing the continued use of the LTO IT System through a parallel
utilization alongside the LTMS”. He also directed the processing of PUV registration renewals through the old system without requiring LTFRB confirmation in 2025.
For its part, the Ombudsman said that the parallel utilization resulted “in the continued generation and collection of computer fees despite the expiration of the BOO Agreement” for STRADCOM.
STATEMENTS FROM MENDOZA, GUADIZ
In response, Atty. Mendoza said in a comment that he respects the decision of the Office of the Ombudsman.
“I have yet to see the copy of the official order and once received, this will serve as the basis to reiterate my position, and present evidence-backed legal arguments that all my actions when I was still the LTO Chief were all for the protection and interest of not only the motorists but also the Filipino people,” he said.
The official continued, “This will be a good opportunity for me to prove it, and eventually clear my name, in the proper forum. Maraming salamat.”
Meanwhile, Atty. Teofilo Guadiz alsp noted that he respects the decision and will to carefully review the contents of the Ombudsman’s report, in consultation with his counsel.
Guadiz also said that he will take the “appropriate legal steps” to protect his rights and formally address the allegations.
“I remain confident that the evidence and the official records will show that the actions I took during my tenure as LTO Chief were lawful, undertaken in good faith, and guided by my duty to serve the public interest,” the official added.
He also said that he welcomes the opportunity to present his side, clarify the circumstances, and establish the facts through the proper legal process.
“I have full faith that, in due course, the truth will prevail and my name will be cleared,” added the ex-LTO chief. “In the meantime, I respectfully ask that the legal process be allowed to take its proper course.”
DOTR’S STATEMENT
Following the suspension of two incumbent transport officials, Department of Transportation (DOTr) Secretary Giovanni Lopez said je respects the decision of the Office of the Ombudsman regarding the preventive suspension.
“While the DOTr has yet to receive a copy of the decision, Sec. Lopez said the agency will comply with the Ombudsman’s order,” he added.
The department also told that both the LTFRB and OTC will remain fully operational and essential services will continue to be delivered efficiently and without interruption.
