Government scams victimize motorists

It really is too much. It is just as well that the Supreme Court stopped the implementation of that overpriced radio tagging device on motor vehicles. It serves no real purpose for private vehicle owners even if it may help traffic law enforcers deal with colorum public buses and jeepneys.

This is not the first time that government sanctioned scams have victimized drivers and owners of motor vehicles. The drug test is the biggest scam the LTO has foisted on us. They don’t even have the courtesy of pretending that they actually test the urine sample.

I remember I was once given a dirty plastic container for my urine sample. When I protested that it will contaminate the sample, I was told “OK lang yan.” As it turns out, I was quickly given my clearance and they didn’t even pretend to use a fake litmus paper or put a few drops of chemicals to simulate testing. I doubt if the drug test ever produced enough rejects to justify the imposition. It was a bad excuse to make money at the expense of citizens.

The smoke test is another scam. And all those vehicles smoke belching on our roads prove that it is just an excuse to separate us from our money. As for the computerization of LTO records, for which we also pay a fee, how come a syndicate faking car registrations has been able to still do business on behalf of carnappers and other criminals right at the premises of LTO too?

Of course the biggest government sanctioned scam motorists have to endure is the road users tax. It is just a piggy bank for corrupt government officials. It is also the convenient piggy bank Ate Glue raids when she has to give politically motivated jobs to so-called street sweepers. The last thing it has made possible is to make driving in this country pleasant and safe.

Now, they want to impose this RFID on us. Not only was this not done in a transparent manner through public bidding, they are asking us to pay up and buy the device even when LTO is not ready with the equipment to read these RFIDs. And I understand it does not work on high end cars whose windshields are protected from ultra violet rays. Sobra na talaga! But what can we expect from DOTC, the department populated by former police officers that also brought us the ZTE national broadband deal?

Here is what one reaction to the RFID scheme I got via e-mail has to say about the scam:

This stinking administration in its death throes just can’t seem to run out of corrupt ideas.

Electronic vehicle registration (EVR) is implemented in many countries. The LTO with its questionable partners have latched on to the advantages of EVR. The LTO charges 350 pesos for the RFID tag that is pasted on the windshield when the car is brought for registration. The RFID tag is a laminate the size of a credit card that is pasted on the windshield of the vehicle. The RFID tag has a small chip for data storage and an antennae. The chip will contain vehicle information and the data can then be read by a reader. Without getting into the technical stuff, it is a passive RFID tag.

RFID tag prices depending on volume and specifications can range from 10 US cents to over 10 US dollars per tag. A passive RFID tag that the LTO has prescribed would cost less than 1 US dollar. Granted that hardware and software system would be needed for EVR using RFID, the additional cost would not justify charging 7 US dollars for each tag.

The crooks have figured out that car owners will be indifferent to paying 350 pesos for the tag that is supposed to be good for 10 years.

But if one considers that 6 million vehicles are registered annually, the total take for this project is 2.1 Billion pesos. Given that a passive RFID tag could be had for less than 1 US dollar but the LTO charges 7 US dollars, there are millions of dollars that can go to the pockets of those thieves in LTO and DOTC and whoever (?)

Furthermore, this RFID project did not go thru public bidding. The LTO argues that the RFID project is an enhancement of the BOT Licensing Project with Stradcom. A lawyer who has extensive experience with IT contracts in government opines this position of the LTO stands on very shaky grounds. The LTO/DOTC officials should be sued for violation of the procurement law.

Come to think of it, we’ve seen this before, no public bidding, overpricing, and DOTC.

To my countrymen, stay cool, the thieves will be out in 5 months.

Sugar

Over breakfast at the Tuesday Club this week, Agriculture Secretary Art Yap redeemed this administration from the impression that it does not know what it is doing on the sugar situation. Secretary Yap confessed that he was surprised when he read newspaper stories quoting DTI Secretary Peter Favila saying government-to-government importations will be immediately resorted to bring down domestic sugar prices.

Secretary Yap called me last Wednesday to further explain that there was apparently a difference in interpretation on what constitutes g-to-g deals between him and Mr. Favila. To the DTI secretary, even private sector importation that passes through NFA and avails of duty free privileges is g-to-g. That’s weird. G-to-g requires another government as a counterparty and it must be a totally government financed transaction.

In any case, Art Yap may be a lawyer rather than a former banker like Favila, but Art knows his Economics much better. Art explained that importation is always a theoretical option in bringing down prices because it will increase supply. But he knows too that it is not an option that can be quickly availed of this time.

Art knows the demand and supply situation is rather tight in the world sugar market these days and prices are too high for the landed cost to make a difference in lowering domestic market prices. Maybe, Art said, we can import a few months down the road.

Besides, Art said, we are in the middle of the milling season and supply is getting into the market now. Art does not want to undercut the millers by importing abruptly. Art thinks the policy of continually sacrificing the farmers in favor of urban consumers is counterproductive to our effort to grow enough food for everyone.

Art asked for a piece of paper and a ball pen and started to scribble out some figures for me. In sum, he scribbled that the price of domestic refined sugar is now P2,200 per bag which comes out to about P44 per kilo, a bit cheaper than the P50 world market price.

Art then explained that we classify our sugar produce into A (for US quota); B (for domestic); C (for domestic reserve) and D (for world market). We have enough supply in the country, Art emphasized. Rather than import right away, what we must do to bring prices down, Art said, is to release our domestic reserve. We can import later to replenish it if conditions are right. Art also wants the Sugar Regulatory Commission to set aside about 100,000 bags (of 200 kgs) for the poor communities.

Art’s explanation was a far cry from the irresponsible challenge of DTI’s Favila to the sugar millers to just export all they have and government will take care of domestic consumers through g-to-g contracts. Nakakahiya! Favila should learn to ask intelligent questions from those who know the score before he opens his mouth the next time.

Ate Glue’s administration already has a bad image for being corrupt. Must it also be thought of as being utterly stupid?

Grey’s Anatomy

Here’s something from Dr. Ernie E.

A pediatrician always plays a game with some of his young patients to put them at ease and test their knowledge of body parts.

One day, while pointing to a little boy’s ear, the doctor asked him, “Is this your nose?”

Immediately the little boy turned to his mother and said, “Mom, I think we’d better find a new doctor!”

Boo Chanco’s e-mail address is [email protected]. This and some past columns can also be viewed at www.boochanco.com