April 19, 2024 - The Supreme Court (SC) will decide on the fate of the P3.19-billion contract awarded by the Land Transportation Office (LTO) in 2018 to German firm Dermalog Joint Venture for the Land Transportation Management System (LTMS).
The petition to nullify the contract was filed by Gerald Domingo and lawyer Jose Carlito Montenegro. They argue that the agreement is flawed and poses risks to public welfare, national security, and the privacy of LTO data subjects.
The LTMS aimed to integrate LTO services – driver's licenses, transport permits, and vehicle registration – into a single online platform. It would replace the existing LTO system and establish a private cloud infrastructure.
The SC requested comments from both LTO and Dermalog on the petition. While the initial request included a temporary halt on the project (TRO), the latest update shows the SC is prioritizing a full resolution on the merits of the case, bypassing the TRO.
Domingo and Montenegro allege the LTMS is incomplete and riddled with issues due to design flaws, unauthorized contract changes, and improper acceptance procedures. They point out extensions granted to Dermalog, delaying project completion by nearly three years, with no penalties imposed for the delays.
The petitioners urge the SC to:
- Order the LTO to pursue administrative and criminal charges against officials involved.
- Blacklist Dermalog from future government bids.
- Direct Dermalog to hand over LTO data and return project funds.
- Hold Dermalog liable for damages of at least P319 million.
The Supreme Court's decision will determine the future of the P3.19-billion project and potentially set a precedent for government procurement practices.