• Driver’s license supplier has no contract with LTO

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    THE Land Transportation Office (LTO) has been paying its supplier of driver’s license cards millions of pesos annually for more than 24 years despite the absence of a valid contract, the Senate committee on finance discovered on Thursday.

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    The issue came up at the resumption of deliberations on the budget of the Department of Transportation and Communications (DOTC) when Sen. Francis Escudero asked if the proposed P586 million for the maintenance and other operating expenses (MOOE) is intended for the payment of supply of driver’s licenses.

    LTO chief Alfonso Tan Jr. said only P528.7 of the MOOE will be allotted for the driver’s license payment.

    Tan told the senators that the LTO is currently not paying any contractor for the supply of driver’s license because of the notice of disallowance issued by the Commission on Audit (COA) last year.

    When asked why COA issued a notice of disallowance, he admitted that the contractor—Amalgamated Motors Philippine Inc. (AMPI)—had been supplying driver’s licenses without a valid contract.

    The LTO chief said AMPI’s contract expired in 1990 but the company was allowed to renew its contract annually until 2006 without undergoing public bidding.

    In 2012, the DOTC investigated AMPI for unauthorized modification of the design of the driver’s license.

    Escudero asked DOTC Secretary Emilio Abaya why his department did not conduct a public bidding on the supply of driver’s license.

    “By doing that you are simply extending the contract and continue to pay a supplier that hasn’t gone through public bidding for the past 24 years,” the senator pointed out.

    He said if it was not for the notice of disallowance, the LTO would have continued with the practice of simply renewing the contract of existing suppliers without calling for a public bidding, which is against the law.

    Abaya said the DOTC had gone through the pre-procurement process and is currently reviewing the terms of reference for the supply of driver’s license.

    He added that instead of looking for a new supplier, the DOTC has decided to manufacture licenses.

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    9 Comments

    1. malabo na ang picture ng aking temporary driver’s license baka ito ang gamiting rason ng traffic enforcer para dakpin ako >< . Bawas oras din yong pa reprint ng temporary license tapos ang haba pa ng linya.

    2. Mag 2 months n non pro licence ko Wala pa din available n card. I hope they could fix this soon. Especially LTO LAS PINAS. Mahirap na sila makontak.

    3. Dapat yan ang investigahan ng senado hindi ung walang kwentang politicking na ginawa ng tatlong senado na yan si trillaness, cayetano, koko pimentel..gumgasto lng ang taong bayan sa hearing na yna na walng katuturan ung corruption sa hany ng gobyerno or departmento na dapat tignan para sa mga mamamyan pilipino…

    4. Has it been done like this because someone keeps getting a brilliant back door payment every year to allow them to keep supplying the dirvers licence. Its a joke isnt it, it seems every department doesnt know how to do things properly. There doesnt seem to be anyone to say why isnt it being done right. The person who that is supposed to make sure it goes through a bidding process to get the contract should be investigated as surely they knew the proceedure but chose to ignore it for reasons known only to them.

    5. Consistent with the MRT-3, Abaya also entered into a negotiated contract with drivers license supplier, after their contract expired. What a shame!

    6. wala ako paki sa drivers license hanggat valid at hindi illegal ito… ang mga plaka ang asikasuhin nyo! hanggang ngayun conduction sticker pa rin fortuner ko, 6 months na!

    7. KAYA PALA KAHAPON NG MAG RENEW KAMI NG LICENSYA AY “FIRST TIME IN MANY YEARS”, NGAYON LANG ULI PINABABALIK NG LTO PARA KUNIN ANG DRIVER’S PLASTIC JACKET MATAPOS DAW ANG ISANG BUWAN, RECIBO LANG NG PAGBAYAD ANG BINIGAY AY MERON PALANG PROBLEMA AT ANG SWERTE NAMAN NG SUPPLIER NA AMPI NA LIFETIME KONTRACT ANG BINIGAY NG LTO. SA AKING LANG PANIWALA AY HINDI SILA MAKAKAKUHA NG GANITONG KLASENG KONTRATA KUNG WALA SILANG LAGAY SA MGA TAGA LTO. DI BA BAYAN?

      • Saang LTO ka pinabalik? Sa LTO Las Piñas ganun din, wala ng license cards so wait na lang daw ng text message from them probably 1 month, worst-case scenario until Feb 2015 or forward.

    8. Make sure I got this straight. For 16 years the contract was just renewed. Then for the past eight years it did not renew the contract it just kept on ordering. How much was spent in this 24 year period? It would be good if you investigated this. On the surface something was done incorrectly. The last sentence on the government deciding to manufacturer the liscenses themselves is another clear wrongdoing by government. They found suppliers but decided against using them?.