The Supreme Court was asked to intervene in a legal battle as petitioners challenge the hefty P3.19-billion contract between the Land Transportation Office (LTO) and German firm Dermalog in a joint venture (JV) to develop the Land Transportation Management System (LTMS).
Lawyer Carlito Montenegro and Gerald Domingo, representing concerned taxpayers and motorists, filed a petition urging the Supreme Court to annul the controversial contract between the LTO and Dermalog.
The petitioners argue that the contract, awarded in 2018, was riddled with irregularities and violated existing laws to the detriment of the Filipinos.
Despite an initial project timeline, Dermalog allegedly failed to meet deliverables within the specified period, prompting numerous extensions from the LTO, prolonging the project by almost three years.
Notably, the LTO did not enforce penalties or terminate the contract despite these delays, raising suspicions of favoritism towards the German firm.
The petitioners highlight the urgency of the situation, citing the project’s nationwide impact on road transportation and national security.
They argue that the defective LTMS might only waste public funds, as it poses risks to government integrity and data security, particularly due to the lack of control over the system’s source code.
“There is also a necessity to immediately resolve the issues at hand to prevent further disbursement and wastage of public funds. Worthy to mention that the assailed contracts are already expiring, which might render the issues raised herein moot,” the petitioners said.
The petitioners seek immediate relief from the Supreme Court, requesting a temporary restraining order to halt further payments to Dermalog and prevent the use of the LTMS. Additionally, they demand the return of government funds, damages, and full control over the LTMS database.
It can be recalled that the Dermalog’s contract with the LTO became a subject of an inquiry conducted by the Senate Blue Ribbon Committee last year.