Technology brings LTO into the 21st century

MANILA, Philippines - There was a time when transacting business in the Land Transportation Office (LTO) was a rigorous and oftentimes unscrupulous process, which more often than not ends up a traumatic and expensive experience.

Just like a La Salle-Ateneo basketball game where hawkers abound peddling courtside tickets for horrendous fees, fixers permeated every nook and cranny of the LTO business processes, offering a wide array of services from speeding up transactions, non-appearance deals to outright fake or what LTO insiders would term as “talahib” registrations and licensing.

The illegal practices were so rampant even at the regional levels that the LTO earned the distinction of being one of the most corrupt government agencies.

That was yesterday and today the LTO sings a different tune. Gone are the fixers, gone are the long lines and gone are the months of waiting just for a simple driver’s license. What used to take days and even months to process, the LTO now can facilitate in a matter of hours and at times, even seconds.

Remarkably, the transport agency is now one of the top five biggest earners of the government and because of an improved brand of public service, it was moreover cited recently as one of the most compliant government agencies as it was named the third least corrupt government agency under the Integrity Development Action Plan (IDAP).

The abrupt 360-degree turn in terms of reputation and performance of the LTO can certainly be attributed to an energetic leadership and the long overdue modernization and computerization program that was effectively and successfully implemented in 2003.

To recall, the Ramos administration, in an effort to cleanse the tarnished image of the LTO and recover lost revenues due to fixing, decided to put into operation the LTO IT project, which was envisioned to totally rinse the agency of unscrupulous activity.

In effect, 31 IT giants vied for the project. Stradec-Comfac or Stradcom won hands down the publicly bid contract primarily because it submitted the lowest project cost price which was P2.5 billion as against its nearest competitor which submitted a P6.7-billion bid. 

Another factor which clinched the contract for Stradcom was the fact that it also submitted the lowest IT fees for driver’s license applications and motor vehicle registrations which was more than 50 percent lower than that of its nearest competitor.

Hence, the Stradcom-LTO partnership was born.

10-year concession

Stradcom’s 10-year concession period for the LTO IT project began on Feb. 10, 2003 with the acceptance of the computerization system.

Under the build-own-operate (BOO) contract, Stradcom would own, operate and maintain all IT facilities at no cost to the government, while the LTO continues to handle the processing of all transactions.

The BOO arrangement is more advantageous to the government because Stradcom, as the private contractor, is fully responsible for the development, operation, maintenance and upgrade of the entire system, thus relieving the government of any risk or financial responsibility.

Further, the LTO does not have to pay for software updates or license renewals nor does it have to hire people to maintain systems or upgrade new equipment in the event of hardware obsolescence. Instead, Stradcom shoulders these responsibilities as part of its goal to provide optimal service to the public.

IT solutions for real change

Stradcom envisions itself as a premier Philippine IT company that focuses on providing solutions that will improve the overall efficiency of the public sector.

As the first IT company in the country to successfully implement a government IT project through the BOO scheme, Stradcom is considered a pioneer in delivering modern, efficient and effective IT services to the Philippine government.

The current LTO IT system is composed of six modules, which deal with specific processes. The Drivers’ Licensing System processes applications for and issues corresponding documents for students’ permits, professional and non-professional driver’s licenses, and licenses for conductors of public utility vehicles.

The Law Enforcement and Traffic Adjudication System was created to provide service for the detection, apprehension, adjudication, and penalization of offending motor vehicle owners and road users. Over the years, the module has increased and enhanced LTO’s efficiency in dealing with traffic violations.

Meanwhile, the Manufacturers, Assemblers, Importers and Dealers’ Reporting (MAIDRS) System maintains records of manufactured, assembled, and imported motor vehicles. The module handles various transactions, specifically the MAIDRS accreditation, reporting, request for confirmation certificate and approvals.

Finally, the Motor Vehicle Registration System provides private, for-hire, government, and diplomatic motor vehicle-related transaction services.

A culture of change

Stradcom continues to improve its processes and services in using technology to promote efficiency and good governance. Building on its technical and management capacity in handling the LTO IT project, the company now ventures into various interconnectivity projects to facilitate faster and more accurate information exchange among government agencies.

These projects promote better delivery of public service, underlying the principles of efficiency, transparency and accountability. Real-time access to information among various government agencies is vital to the promotion of efficiency, public safety and order.

And Stradcom plays a key role in using technological innovations to promote a culture of change among bureaucratic agencies. It has spearheaded the development and implementation of new applications linking the LTO to other government agencies, which are expected to further increase public service efficiency and effectiveness.

One is the PETC-Information Technology Facility, developed in compliance with the Clean Air Act of 1999. It discourages the proliferation of fraudulent Certificates of Emission Compliance and ensures vehicles’ compliance to smoke emission standards.

Another is the Certificate of Cover Validation Facility (COCVF), which addresses the deficiencies of the insurance industry by providing reliable security through valid CTPL policies. Designed with a three-way matching capability, this facility locks valid CoCs to the details of a specific motor vehicle and ensures that the policy is from an accredited insurance company.

The Metropolitan Manila Development Authority-Integrated Law Enforcement System is an online facility that creates alarms or violations on specific drivers’ licenses or registered vehicles.

In addition, the Certificate of Payment Authentication and Verification System streamlines transactions between the Bureau of Customs and the LTO by eliminating the need for human intervention in the submission process, as all transactions are performed online.

Closer to the people

The synergy between LTO and Stradcom has resulted in innovations that bring services closer to the public. For instance, there’s the LTO Web portal (www.go.lto.net.ph), which currently offers online services for motor vehicle and Law Enforcement and Traffic Adjudication System certifications.

Meanwhile, e-Patrol is a highly innovative mode of public service. Through roving buses and container vans, LTO services are brought to far-flung areas. These district offices-on-wheels have been instrumental in helping those from remote places to easily apply, renew licenses or register their vehicles without having to travel great distances.

Through Text LTO, information is right at motorists’ fingertips. The facility was launched in early 2008 in response to the need to make LTO-directed inquiries and transactions easier for the public. The SMS query service is accessible via all major cellular networks; motorists only need to text LTO<space> HELP and send to 2600 for a complete list of keywords and services.

Another innovation is the Radio Frequency Identification (RFID), which helps prevent car theft. Launched in April 2008, RFID is a cutting-edge technology that promises to ensure vehicular and public safety and security. RFID will first be applied to enhance the agency’s motor vehicle registration system, ensuring compliance to emissions and roadworthiness testing.

In addition, the Mobile Query Tool aids in vehicle law enforcement by allowing the apprehending LTO officer to access the central database anytime, even while on field. With the use of mobile handheld devices, an LTO officer can verify from the database information on any vehicle or motorist that may have a pending alarm or violation.

In the years to come, expect Stradcom to create more innovative applications that will benefit the government and the private sector alike. Through these new developments, it hopes to contribute in paving the way to a more progressive nation and move closer to its vision of providing real change through IT.

A world-class IT firm

Contrary to what detractors say that it is a blacklisted company, Stradcom has the distinction of implementing the most successful computerization project under a BOO scheme despite coming close to bankruptcy in its early years due to delays in the remittance of payments.

Because of this, Stradcom has been a recipient of several local and international awards such as the Philippine e-Government Award-Special Citation for Excellence in Governance with the Use of Information Technology, the Philippine Internet Commerce Society (PICS) e-Government Award in November 2002, the Grand Prize for Best Product and Service Award for Public Service Center from the International Trade Expositions and Missions (CITEM) in February 2003, and most importantly the Laureate under the Transportation Category of the 2008 Computerworld Honors Program given in Washington, DC in June 2008.