The word is out. The controversial deal with the Department of Transportation (DOTr), Land Transportation Office (LTO) and service provider STRADCOM has finally been terminated. According to a statement issued today, STRADCOM will have one year to implement the phase out.
DOTr Secretary Art Tugade revealed the phase out will allow the agency to search for a new data and computer service provider. Moreover, STRADCOM will assist in ensuring a smooth turnover of all computer operations to the succeeding IT service provider that will be selected.
For its part, DOTr has agreed to settle the P8 billion debt incurred by the government to STRADCOM. Of course, this assumes that both parties will abide by the rules set by the Commission on Audit. In addition, STRADCOM can still join the next bidding, assuming of course, that it is qualified to do so.
It will be recalled that the IT service provider deal started as far back as 2011 when the P8.2 billion LTO IT system was bid out. A year later, however, the contract was split in two—with the P3.4 billion for software data components, while the hardware part amounted to P4.8 billion. This was due to the bidders inability to qualify for the broad scope of the said project.
As if this wasn’t enough, the bidding was further delayed as the Quezon City Regional Trial Court issued a Temporary Restraining Order due to internal squabbles within the winning bidding companies—STRADCOM. The TRO lasted up to 2013, which also saw the STRADCOM contract expire. Yet to avoid going back to manual operations and disrupting service, the government agreed to extend STRADCOM’s contract, invoking emergency powers through Republic Act 9184 or the Government Procurement Reform Act and as history would show, the QC-RTC finally lifted the TRO in the same year, which was also upheld by the Court of Appeals.
But what does this all mean to the motoring public, you ask? In a nutshell, it will ensure that all government transport agencies are in sync, such as making it easier to locate stolen vehicles, as well as issue franchises and eliminate colorum vehicles. It can also help monitor unregistered vehicles and avoid double registration.
We do hope that change will finally come.
