DOTr, LTO to pursue P3.8-B motor vehicle license plate deal

“The only concern of the DOTr-LTO now is to distribute the plates to the millions of Filipino motorists, following the aforesaid decisions of the SC and the COA. This is not a case of accommodation or corruption, just public service.” (File Photo: Department of Transportation – Philippines/Facebook)

MANILA — The Department of Transportation (DOTr) and Land Transportation Office (LTO) is committed in pursuing the PHP3.8 billion motor vehicle license supply contract that was awarded under the previous administration.

In their joint statement Tuesday, both agencies said there is no legal basis for the cancellation of the contract of Power Plates Development Concepts Inc. and J. Knieriem BV-Power Plates under the Motor Vehicle License Plate Standardization Program (MVPLSP) amid concerns raised on its alleged irregularities.

Under the contract, PPI-JKG was required to supply 15 million new plates for five years. However, only four million were distributed, resulting in a backlog of 11 million, the agencies said.

“We would like to clarify that there is no legal basis to cancel the contract…The DOTr-LTO is duty-bound to honor the contract regardless of which administration started it. The insinuation that reviving the deal ‘reeks of unpardonable graft’ is prejudiced and unfair. Questions about the deal should be taken up with the Supreme Court and the COA (Commission on Audit),” the DOTr-LTO statement read.

The COA issued a notice of disallowance last July 2015 on the PHP487.9 million advance payment made by the LTO to PPI-JKG for alleged irregularities in the allocation of the agency’s budget.

The High Court also stopped the DOTr and LTO from distributing 700,000 license plates turned over the by Bureau of Customs to LTO after former Abakada Party-list Rep. Jonathan dela Cruz and incumbent Parañaque City 2nd District Rep. Gustavo Tambunting questioned the implementation of the deal in light of the COA order.

The shipment of plates was stalled for a year at the Manila Port after PPI-JKG failed to pay PHP40 million worth of taxes and customs duties.

The SC declared as constitutional the MVPLSP, resulting in the release of 700,000 license plates on January 2018. The COA also lifted the notice of disallowance against the license plate standardization program last July.

“The only concern of the DOTr-LTO now is to distribute the plates to the millions of Filipino motorists, following the aforesaid decisions of the SC and the COA. This is not a case of accommodation or corruption, just public service,” DOTr and LTO said.

Last April 24, the LTO has inaugurated its platemaking facility which is part of the PHP978.8-million contract awarded to Trojan Computer Forms Manufacturing Corp. and JH Tonnjes E.A.S.T. GmbH Joint Venture for the procurement of 775,00 pairs of motor vehicle plates.

The contracts also called for the production of 1.7 million pieces of motorcycle plates to address the plate requirements from July 1, 2016 to Dec. 31, 2017. The facility can produce at least 22,400 license plates daily.

The total backlog of plates for motor vehicles and motorcycles from July 2016 to March 2018 has reached 3.8 million and 5.2 million, respectively.