Land Transportation Office (LTO) Chief and Assistant Secretary Vigor D. Mendoza II has strongly denied allegations from German firm Dermalog that he prefers the old IT system over the Land Transportation Management System (LTMS). In a statement released Monday, March 10, Mendoza dismissed the claims as baseless and accused Dermalog of failing to deliver the promised digitalization services.
“This is not true,” Mendoza asserted. “Since I assumed the top LTO post in July 2023, one of my priorities has been to go fully digital to ensure fast and comfortable transactions for millions of our clients.”
System Limitations and Glitches
Mendoza clarified that while digitalization remains a priority, technical limitations and discrepancies in the LTMS have prevented a full transition. Among the major concerns is the erroneous computation of certain fees, such as the Motor Vehicle User’s Charge (MVUC), which has led to difficulties in processing transactions.
“All our frontliners down to the district offices could attest to this, and even LTO. These limitations are the reason why, until now, the LTO could not go fully digital and had to revert to the old system because there are transactions that could not be handled by the LTMS,” Mendoza explained.
The LTMS, a digitalization contract worth over P3 billion signed in 2018, was expected to streamline LTO services. However, Mendoza pointed out that despite the high cost, the system has not met expectations, causing inconvenience to many Filipinos.
“The promised impeccable and complete services, along with the high expectations of quality and world-class services that come with that contract price, were not met. The worst part is that the Filipino people continue to shell out millions of pesos until now for service maintenance that is not included in the original contract,” he stated.
Legal Battle and Supreme Court Case
The LTO Chief noted that the Commission on Audit (COA) and the Department of Information and Communications Technology (DICT) have documented issues regarding the LTMS. Furthermore, the system’s inefficiencies have led to a legal case pending before the Supreme Court, filed by two LTMS users who were among thousands affected by technical glitches.
“We in the LTO hope and pray that the Supreme Court finally resolves and releases the decision on this case,” Mendoza said.
Mendoza: ‘Dermalog is at Fault’
Responding to Dermalog’s accusations, Mendoza argued that the German firm is attempting to deflect blame and divert public attention from its own shortcomings.
“Kung sinunod lang ng Dermalog ang mga nakasaad sa kontrata, at tinupad ang kanilang ipinangako na maganda at maayos na digitalization, wala sana tayong problema at matagal na sanang nagkaroon ng transition sa 100% na paggamit ng LTMS,” Mendoza emphasized.
He further criticized Dermalog’s claim that the LTO’s actions have led to business investment cancellations, calling it an act of desperation.
LTO’s Commitment to Digitalization
Despite the ongoing challenges, Mendoza assured the public that the LTO remains committed to achieving full digitalization at minimal cost to the Filipino people.
“LTO commits to continuously finding ways to make the agency’s services 100% digital—but with the least cost to the Filipino people,” he said.
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