DOTC, Stradcom executives face plunder raps

MANILA, Philippines -  Two Department of Transportation and Communications (DOTC) officials were charged with plunder and graft before the Office of the Ombudsman for allegedly allowing Land Transportation Office (LTO) contractor Stradcom Corp. to collect over P2.2 billion in “questionable” interconnectivity fees.

In a complaint dated April 27, the Road Users Protection Advocates (RUPA) lodged charges against Undersecretary Aristotle Batuhan and Assistant Secretary Raquel Desiderio – now in charge of the LTO – for allegedly giving undue advantage to Stradcom, whose officials were also named as respondents.

According to the complaint, then LTO chief Virginia Torres revoked on June 30, 2010 administrative orders allowed Stradcom to collect interconnectivity fees without giving the government any share in the revenue. Batuhan allegedly countermanded Torres’ order.

The complaint said interconnectivity fees collected by Stradcom have reached P2.2 billion as of 2010 allegedly through collection from private emission testing centers (PETCs) and insurance companies.

RUPA also accused Batuhan and Desiderio of pressuring LTO to release P662 million in outstanding fees to Stradcom despite a pleading filed by the LTO before the Quezon City regional trial court (RTC) which seeks to compel the two factions within Stradcom to settle their ownership dispute in court.

The complainant is asking the Office of the Ombudsman to issue a preventive suspension order against Batuhan and Desiderio during the course of its investigation.

The group also asked that the P2.2 billion collected by Stradcom in interconnectivity fees be reimbursed to the government, and that the P662 million that Stradcom’s two factions are demanding from LTO be put in escrow until the ownership dispute within Stradcom is resolved.