Solons urge LTO to rescind LTMS provider contract

Several lawmakers again called on the Land Transportation Office to rescind its contract with a Land Transportation Management System (LTMS) service provider.

House Committee on Transportation Chairman and Antipolo City 2nd District Representative Romeo Acop pointed out that Dermalog Joint Venture allegedly violated two provisions of the Government Procurement Manual when it failed to submit the required deliverables on time despite being granted 13 deadline extensions.

Acop said these violations amounted to P1.119 billion in liquidated damages, which “merits the filing of termination or rescission of the contract.”

“Pursuant to the Revised Implementing Rules and Regulations of the Government Procurement Reform Act (R.A. 9184), once the cumulative amount of liquidated damages reaches 10 percent of the amount of the contract, the procuring entity may rescind or terminate the contract without prejudice to other causes of action and remedies available under the circumstance,” Acop said.

For his part, SAGIP Party-list Representative Rodante Marcoleta ordered the Land Transportation Office to immediately start the process as the contract was “ripe for termination.”

Marcoleta said the termination could ensure LTO’s complete control over the LTMS to implement changes since Dermalog repeatedly refused to turn over the source code to LTO until its contract ends next year.

Meanwhile, LTO chief Vigor Mendoza II said in a recent congressional hearing that the agency was finalizing its legal steps to proceed with the contract termination with the help of the Office of the Solicitor General (OSG).

Mendoza said the agency was also coordinating with the Department of Information and Communications Technology (DICT) to ensure that public services, including motor vehicle registration and driver’s license applications, would not suffer amidst any legal actions that the LTO would undertake.

“The Department of Transportation agrees as far as the grounds for rescission of contract is concerned. They have reviewed and we have already provided them with the COA report as early as last year,” Mendoza said.

To recall, the Commission on Audit had revealed that the actual delivery period of milestones under the LTMS project from Dermalog exceeded the allowable time extension.

The COA reported that Milestones 1 and 3 of the LTMS were delayed from 165 to 756 days, respectively, despite multiple deadline extensions. — DVM, GMA Integrated News