Manila: Ombudsman Jesus Crispin Remulla announced the preventive suspension of former Land Transportation Office (LTO) chiefs Vigor Mendoza II and Teofilo Guadiz III due to the continued use of the Stradcom-operated LTO information technology (IT) system, which resulted in an additional PHP13.3 billion in computer fees. The suspension is in effect for six months or until the administrative case against them is resolved.
According to Philippines News Agency, the order was issued on Monday, stating that Mendoza, the current chairperson of the Land Transportation Franchising and Regulatory Board (LTFRB), and Guadiz, the current chairperson of the Office of Transportation Cooperatives (OTC), have been placed under preventive suspension 'without pay.' The order cites strong evidence of grave misconduct and conduct prejudicial to the best interest of the service.
The ruling highlighted the continued use of the LTO IT System by the two officials, which demonstrated a disregard for established government policy and directives aimed at transitioning LTO operations to the Land Transport Management System (LTMS). The suspension aims to preserve documents and evidence under the respondents' control and prevent further misconduct.
The complaint emerged after the Commission on Audit (COA) noted that the parallel use of the two systems resulted in the 'non-maximization of the benefits' expected from the LTMS project. COA found the continued operations with Stradcom led to additional expenses of PHP13,379,196,499.73 from 2019 to 2025.
The government's agreement with Stradcom dates back to a 1998 Build-Own-Operate (BOO) Agreement, with operations initially set to expire in 2013 but extended monthly afterward. A Phase Out Agreement in 2016 allowed Stradcom to continue until a new system was operational, resulting in the eventual implementation of the LTMS by 2021.
Despite the LTMS's establishment, the order noted that Guadiz, during his tenure in 2022, favored the old IT system, claiming it provided better solutions. Mendoza, in 2023, issued memoranda reinstating the use of the LTO IT System alongside the LTMS, leading to ongoing computer fees despite the BOO Agreement's expiration.
Mendoza responded to the suspension by expressing his respect for the Ombudsman's decision and his intention to present evidence-backed legal arguments to clear his name. He emphasized that his actions as LTO Chief were in the best interest of motorists and the Filipino people, viewing the suspension as an opportunity to prove his position in the proper forum.
