Manila: The Office of the Solicitor General (OSG) has petitioned the Supreme Court (SC) to make a ruling on the PHP3.19 billion contract that the Land Transportation Office (LTO) entered into seven years ago with a German firm for developing its digital database platform.

According to Philippines News Agency, the Solicitor General, Darlene Marie Berberabe, submitted a 10-page motion on September 9, seeking a restraining order from the SC. Berberabe urged the court to void the contract between the LTO and the German Dermalog joint venture concerning the Land Transportation Management System (LTMS). The Solicitor General argued that the LTMS is unreliable and poses risks to national security and state interests.

The OSG has requested the SC to compel Dermalog to release and transfer the source code and database to the LTO. Furthermore, the top government counsel asked the high court to halt the implementation of the LTMS by the LTO to prevent potential significant harm to the government and the public, and to cease further payments to Dermalog.

On August 20, 2025, the House of Representatives' Committee on Transportation examined the status of LTO's LTMS with Dermalog, suggesting a new motion for early resolution due to its public interest implications. In March 2024, a petition against the LTMS was filed with the SC. The system aims to consolidate all LTO services, such as driver's license issuance, motor vehicle registration, and transport permit issuance, into a unified database and digital platform.

In its motion, the government highlighted the public interest aspect of the case, emphasizing that it will significantly impact the registration, licensing, and other agency functions. The government noted that if the court later declares the Dermalog contract void, the related change orders and system enhancements intended to improve public service would be halted.