LTO struggling with Stradcom

COMMONSENSE By Marichu A. Villanueva (The Philippine Star) Updated December 22, 2010 

At this time of the year, the volume of public transactions at the Land Transportation Office should have been tapering off. But due to the ongoing intra-corporate dispute at LTO’s private information technology (IT) provider, Stradcom Corp., the agency in charge of driver’s license for vehicle registration has been deluged with pending public transactions. This was the immediate aftermath of LTO being dragged into this corporate maelstrom.

Stradcom Corp., headed by Cezar Quiambao, president and chief executive officer, traced his company’s woes to LTO Chief Virginia Torres. In fact, the Quiambao-led faction of Stradcom pointed to Torres as allegedly behind the sudden halt in operations of the agency on Dec. 9. It was when their rival camps at Stradcom stormed the LTO head office in East Avenue, Quezon City.

He portrayed his company as the victim of bullying tactics allegedly perpetrated by Torres and her LTO executive assistant Menelia Mortel. This was after public transactions at LTO were suspended when his rivals in this intra-corporate dispute tried but failed to take over Stradcom’s operations at the agency during that media-hogging incident.

It was obviously a fact that their own company’s security guards can’t do anything against three jeeploads of security guards or stop a number of individuals for scheming a takeover of Stradcom at the LTO. But blaming the resulting paralysis at the LTO operations for their company’s woes was not valid but a lame excuse.

It was simply because Stradcom employees can’t turn on the switch of the main facility. All this time, Torres said it was only lately that LTO found out that Stradcom has not put up a back-up data system as provided for in their contract with the agency.

I heard in a radio interview the LTO chief candidly admitted she herself is no tech-savvy. A career service officer who rose from the ranks, Torres knows about systems failure at the LTO when their IT provider could not produce any back-up data.

So it is rather unacceptable when Stradcom is trying to put the blame on a person who doesn’t even know how to start the system. As the IT provider, it is for Stradcom to make sure that the IT system runs at LTO day-in and day-out, especially in case of emergency to prevent disruption of public service.

Stradcom’s intra-corporate dispute, where the government is not even a party to, is no reason for the transacting public to suffer its consequence. Indeed, Stradcom’s employees were physically prevented to enter the company premises at the LTO. But using that as a reason why they were unable to start the IT system at the LTO was a poor alibi to escape from their failure to meet contract provisions, specifically a provision for back-up data system.

Their system did not even suffer the slightest scratch from the takeover drama. Yet they were unable to make adjustment to switch to the back-up system and turn on the operations back to normal.

Since the secondary system must shoulder the load of all LTO transaction, it must be separate and independent from the main facility. But this recent incident at the LTO proved otherwise. Having a back-up booting system entirely anchored on main control is a big failure on the IT design. Or maybe, there was a big deception that they really don’t have a contingency system to start with.

In the complaint affidavit, Stradcom claimed: “Their (Torres’ and Mortel’s) concerted actions caused the paralysis of the LTO’s operation.” They further complained the actions taken by the two LTO officials “resulting to substantial loss of revenues for the government and Stradcom” speak ill of the government’s way of doing business.

But in their own words, it is plain and obvious that Stradcom and Quiambao’s first order of business is to make money for themselves. Giving service to the public is secondary, if not necessary, for their corporate survival. Make more money and collect sympathy by making his company look like being mistreated by the government seemed to be the order of the day.

The Sunday issue of The Manila Times on the LTO-Stradcom was quite extensive and an eye-opener after reading it. It practically leads readers to conclude the LTO-Stradcom partnership must be reviewed and certain provisions be corrected immediately.

But LTO must take the blame also for having abdicated its executory functions from the time it allowed Stradcom to practically hold hostage the LTO database and information flow. Under its Build-Operate-Own (BOO) agreement, Stradcom charges the LTO service fees and the LTO in turn passes these charges to the public via computer fee for any transaction done with the LTO.

Stradcom put up a facility to connect certain on-line transactions with the LTO under the so-called “inter-connectivity” scheme. But remember, this same facility uses the LTO database and its IT system. These fees do not go to the government but to Stradcom.

Thus, Stradcom sits on top of LTO imposing fees to the transacting public while practically making the LTO as its collecting agent.

Drivers getting their licenses pay Stradcom’s “inter-connectivity” fee for every transaction like drug test and clearance from the Metro Manila Development Authority (MMDA), especially for driver license renewal. Vehicle owners pay Stradcom “inter-connectivity” fee when they secure emission test; a separate “inter-connectivity” fee for insurance coverage; and another ‘inter-connectivity” fee for Land Transportation Franchising and Regulatory Board (LTFRB). And the public must pay LTO/Stradcom computer fee.

LTO must free itself from dependency to its contractors if only to protect public interest. Stradcom is literally strangling the government, especially the LTO. They are and have been for the longest time taking full advantage of their database as collateral to control the agency.

The recent events were huge revelation that the LTO has to assert its power as the governing body and guardian of public welfare. It cannot do so with its constant struggling with its IT contractor. LTO must strive to be independent, information-wise.