Senators slam DOTC, LTO purchase of new vehicle plates

MANILA - Senators grilled officials of the Department of Transportation and Communications (DOTC) and the Land Transportation Office (LTO) for their acquisition of new plates for all vehicles in the country, and for supposedly profiting from fees imposed on vehicle owners.

At a hearing of the Blue Ribbon committee on Thursday, lawmakers also found that the P3.8-billion contract to buy millions of new plates, which motorists were required to buy and replace their old plates with, was awarded to a supplier even without a budget for it.

Senate Majority Leader Alan Peter Cayetano zeroed in on the P50 that vehicle owners have to pay apart from the P450 fee for buying the new plates and registration stickers.

This was after Edward Ferreira, one of the private bidders for the deal, pointed out that the bidding invitation stated the P450 fee would cover two license plates, plate screws, and a sticker.

P400-MILLION PROFIT

With an estimated 8 million vehicles in the country, either the LTO or the supplier easily earned P400 million in profit, Cayetano said.

“Tinubuan n’yo ang taumbayan ng P50 (You padded the cost to the public by P50),” Cayetano told officials. “Why don’t you just admit to to the people na gagatasan namin kayo, na ginatasan na namin kayo sa P450, gagatasan pa namin kayo sa P50 (Why don’t you just admit to the people that we will milk you, that we milked you for P450 and milk you even more for P50).”

LTO Assistant Secretary Alfonso Tan Jr. said the agency’s fees were mandated by law, and it could not simply reduce them.

He also explained that the LTO has always procured plates and stickers separately.

“This time we bidded them out together because we wanted the plate numbers printed on the stickers,” he said.

But Tan also admitted that the LTO would not operate at a loss even if it does not impose the additional P50 fee.

“So it’s a profit,” Cayetano said.

NO P3.8-B BUDGET

The contract to supply the new plates under the LTO’s license plate standardization program was awarded to a joint venture of Power Plates Development Concepts Inc. and the Dutch firm J. Knierem BV-Goes in July 2013.

A resolution by Sen. JV Ejercito, who called for the investigation, alleges that the DOTC’s bids and awards committee favored the joint venture despite its financial incapacity and inexperience.

Senate President Pro Tempore Ralph Recto noted the DOTC and LTO entered into the supply agreement, and before that advertised a P3.8 billion price tag for the project, even when it was not in their budget.

He said that as a rule, biddings may not be conducted without a special allotment release order or money for any project.

“Parang may panloloko doon. Maliwanag na mali ‘yon (There seems to be deception there. That’s clearly wrong),” Recto said.

Jose Lotilla, chairman of the DOTC’s bids and awards committee for the plate project, stressed that the bidding process was aboveboard.

“The consideration of the bids and awards committee is you would wish to open the bidding to as many bidders a possible,” he said. “You would precisely want to get the best price for government.”

The Commission on Audit said it is already looking into the matter.

WHAT GOOD?

Motorists have complained of the additional cost of buying the new plates to replace their old license plates, especially when government implemented a “no plate, no travel” policy.

Recto also questioned the benefits of buying new plates and requiring vehicle owners to replace their old ones.

“What good has it done for motor vehicle owners?” Recto said. “Ano’ng pakinabang ngayon na gumagastos ang tao? Nabawasan ba ang traffic? (What benefit does it have now that people are spending? Was traffic reduced?)”

Tan said the new plates have stronger security features.

“If that is attached properly, that cannot be stolen easily,” he said.

But Recto was unconvinced, pointing out the unnecessary burden motorists have to carry.

“Parang negosyo lang ito na binigay natin sa bagong supplier. Palitan natin ang lahat ng plaka. Gagastos ang taumbayan dito, na hindi naman kailangan (It’s just like giving business to the new supplier. Let’s replace all plates. The public will spend for this, which is unnecessary),” he said.