LTO project on the spot

Many people in the land transportation industry are keenly anticipating developments in the ongoing controversy concerning the information technology project for the Land Transportation Office (LTO) which was undertaken by a private firm, Stradcom Corporation.

The Commission on Audit’s (COA) report on the Sectoral Performance Audit on the project focused specifically on the Build-Own-Operate agreement that the agency entered into with Stradcom. From what we gather, the report is highly critical of the implementation aspect of the project.

Congressman Rodolfo G. Plaza of the Lone District of Agusan del Sur got a copy of the report, and what he read was enough for him to call for a probe into the project. He then filed House Resolution No. 803 asking the House Committee on Good Government and Public Accountability to conduct an investigation in aid of legislation. The resolution seeks to look into what Plaza avers is the “failure of the Land Transportation Office to adequately protect public interest in the LTO Information Technology project.”

Congressional investigations, both in the House and the Senate, are a dime a dozen. But any supposed wrongdoing with respect to a government agency and a private company involved in a project must necessarily involve public interest. And in this project, we are talking not only of private vehicle owners, nor of public transport operators, conductors and drivers of buses, jeepneys and taxis, but of the millions of people all over the country who depend on public transport for mobility.

While we have heard some favorable comments about Congressman Plaza, we wanted to be sure that he really has solid ground in calling for an investigation into the LTO’s information technology project. Moreover, we do not relish the idea of wading through the “Whereases” of a House or Senate Resolution.

So, wary of the possibility that this call for a congressional probe could be a vehicle for grandstanding and public exposure “in aid of reelection,” we tapped some of our sources to secure some documents on the COA report — the smoking gun, so to speak. What we got convinced us that indeed, the project must be looked into — as the data in the report was a searing indictment of the very serious lapses and shortcomings of the project.

For one, the report said that the project was not efficiently and effectively implemented, and both government and public interest were not adequately protected under the contract. While the project was to be completed within 18 months, it was only 95 percent complete 60 months after the adjusted commencement date! Below are direct quotes of portions of the Audit Conclusion of that COA report.

“The project was undertaken under a BOO scheme where only the database will be owned by the LTO at the end of the concession period. The IT facilities and application systems, the costs of which were recovered from the users, remained the property of the proponent. Under this condition, the project continuity would be affected unless the LTO would be able to renegotiate or be able to acquire the necessary facilities at the end of the contract.

“The IT fees were imposed without public consultation on the acceptability of the fees and prescribed rate of return. The demand projections were likewise understated adversely affecting the validity of the bid IT. Moreover, the contract provides for automatic adjustment without considering the increase in volume of transaction and rate of return.

“The system was not automatically upgraded as required in the contract, resulting in frequent slowdowns and hanging during processing of transactions.”

We don’t want to be judgmental about the allegations against LTO and Stradcom Corporation. So, let the proper House committee get on with the probe and let the facts come out for the public to judge.

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I’m sure most of us Filipinos are familiar with Manila Hemp or abaca, the small, inedible plant that’s a semi-wild variety of the banana tree. While abaca has been used primarily to make rope, it is also used as fabric material that is durable, and when tye-dyed, lends itself to extremely colorful designs and patterns.

Abaca as fabric material came to my mind when I recently saw a foreign woman at a hotel in Makati whose dress simply fascinated me. As she was about to leave, I approached and complimented her on her outfit. The lady whom I found out is a British national, flashed a warm smile, thanked me and said she had it made in Manila, and the material used was . . . you guessed it, abaca.  

I then remembered that shortly after President Arroyo’s State-of-the Nation address, I came across a photo of lawyer Romela Bengzon who had attended the event, in an elegant off-shoulder multi-layered outfit by Patrice Ramos Diaz, and the fabric used was abaca.

I learned recently that Attorney Bengzon who is also our Trade Ambassador to the European Union, has been busy promoting Manila hemp, in its various applications, in the countries she deals with. Bravo to her for this endeavor. Hump-hemp, hooray!

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Today’s discussion at the Bulong Pulungan sa Sofitel (formerly Philippine Plaza Hotel) will be on the controversial, necessary bill on reproductive health.

Dr. Quasi Romualdez, former Secretary of Health, will talk about the advantages of having the bill approved. An opponent of the bill is expected to attend the Tuesday lunch forum.

The public is invited to attend the forum which starts at 12 noon. Lunch will be served for a minimal fee. Call Sofitel, public relations office, 5515555.

(Next Tuesday’s forum will be on programs for deaf persons.)

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My e-mail:[email protected]