During a recent press conference in San Fernando, Pampanga, various transport and consumer groups urged President Ferdinand Marcos Jr. to remove Atty. Vigor Mendoza II from his position as Chief of the Land Transportation Office (LTO). They claim that Mendoza’s leadership has exacerbated existing issues within the agency, highlighting numerous corruption allegations and operational inefficiencies.
Corruption Allegations
The Coalition for Good Governance plans to hold provincial press conferences and present their case to business chambers across Luzon, Visayas, and the NCR. They submitted letters to President Marcos on January 25 and February 6, citing a troubling increase in anomalies at the agency. They specifically pointed to “dubious practices” associated with Mendoza’s administration, particularly the imposition of additional fees for vehicle registration.
Critics have condemned the LTO for implementing unnecessary “computer fees,” which burden transport operators and private car owners. They also raised concerns about the agency allowing vehicle registrations without required insurance policies and even permitting registrations with fake insurance, posing serious road safety risks.
Coalition Actions and Concerns
The Coalition is calling for an end to reliance on Stradcom’s Motor Vehicle Inspection and Registration System (MVIRS), which they argue should be completely phased out since its contract with the LTO expired years ago. Despite this, the system remains partially operational under a “phaseout agreement,” exposing the agency to inefficiencies and potential corruption.
In December 2021, former LTO Assistant Secretary Edgar Galvante issued a memorandum to decommission Stradcom’s outdated systems in favor of the government-owned Land Transportation Management System (LTMS), designed to modernize operations. However, the Coalition contends that the transition has been slow, allowing Stradcom’s outdated systems to persist despite an investment of approximately 7.9 billion pesos in the LTMS.
Prominent Advocates for Change
Notable advocates for Mendoza’s removal include Diolito Inosanto, President of the Federation of Land Transport Operators of the Philippines (FLTOP); Martin delos Angeles, Vice President of the Philippines Transport Monitor (PTM); and Augusto Lagman, a board director of the Automobile Association of the Philippines (AAP). They expressed frustration over the LTO’s reliance on outdated technology and questioned the ongoing use of Stradcom’s systems despite significant investment in the LTMS.
The Coalition emphasized that reforming LTO leadership could restore public confidence in the agency’s ability to ensure transportation safety and compliance. However, President Marcos has yet to comment on the calls for Mendoza’s removal.
Mendoza’s Response
In response to the corruption allegations, Mendoza denied the claims, asserting that these issues had been addressed since his appointment in July 2023. He highlighted improvements in online transaction consolidation and increased production of license plates to tackle backlogs. While he acknowledged FELTOP’s right to voice complaints, he argued that substantiating the allegations would be challenging.
The LTO’s Transportation District Officers Association of the Philippines also refuted the corruption allegations, emphasizing the need for aggressive policy reforms to address digitalization challenges.
Operational Challenges at the LTO
The LTO issues around 30,000 driver’s licenses, registers 70,000 cars, and processes over 100,000 payments daily across its 430 offices. However, managing these transactions is complicated by the use of two competing IT systems: one from Stradcom and another from a Dermalog-led joint venture. This dual operation has created fraud loopholes, costing motorists billions.
Documents obtained by iOrbitNews show that the old system allows vehicles to be registered despite failing roadworthiness tests, complicating data management and enabling fraud. Reports indicate that many motorists, including corporate fleets, bypass required tests, with inspection centers offering “special” services for guaranteed passing marks. Although the LTMS provides more secure testing, the old system facilitates manipulation.
In March 2024, a report revealed a motorist who renewed their motorcycle registration despite failing a roadworthiness test using the Stradcom system.