DOTC chief orders review of LTO, LTFRB contracts

MANILA, Philippines - Transportation and Communications Secretary Jose “Ping” de Jesus said that he has ordered a review of all contracts and projects at the Land Transportation Office (LTO) and the Land Transportation Franchising and Regulatory Board (LTFRB).

De Jesus, in a phone interview with The STAR, said that one of the contracts up for review is LTO’s controversial computerization deal with Stradcom Corp. forged in 1998.

De Jesus said they would also look into acquisition of equipment by the LTO and the LTFRB.

“I just want to take a look (at all the contracts),” De Jesus said, adding that he has heard of numerous allegations of anomalies in the acquisition of equipment or in the choice of contractors.

Stradcom is besieged with allegations that it has been illegally collecting fees for connectivity to the LTO’s systems database.

There have also been complaints about LTO’s alleged poor service despite its computerization deal with Stradcom.

The LTO also recently came under fire for an aborted P500-million contract for the supply of driver’s license during the last few weeks of the Arroyo administration.

De Jesus, meanwhile, also announced new appointments to key DOTC posts.

Investment banker Glicerio Sicat has been tapped to serve as DOTC Undersecretary in charge of the Air and Rail Transport Sectors; Cebuano lawyer Aristotle Batuhan is Undersecretary for Legal Services; and public relations man Dante Velasco is Undersecretary for Public Information in charge of the DOTC’s Action Center.

“There will be a re-clustering of the functions (in the DOTC) that will be seen in the new appointments,” De Jesus said.

The move is expected to streamline positions in the DOTC.

De Jesus’ predecessor, Leandro Mendoza, was said to have created numerous positions in the DOTC to accommodate fellow retired police officials.

For instance, retired police generals Thompson Lantion was named undersecretary for Land Transport, and Edward Harun Pagunsan for Staff Support Services.

Even assistant secretary positions had been dominated by retired police generals: Doroteo Reyes, assistant secretary for finance and comptrollership; Reynaldo Berroya, assistant secretary for “special concerns” and retired military officer Eduardo Kapunan, assistant secretary for “Western Visayas Affairs.”