The Supreme Court has submitted for resolution a petition seeking nullification of the P3.19-billion contract of the Land Transportation Office with Dermalog Joint Venture, a German firm.
The contract involved implementation of the LTO’s Land Transportation Management System , was envisioned to integrate all LTO services – like issuance of driver’s license and transport permits, and registration of motor vehicles – into a single database and digital platform. Dermalog Joint Venture is composed of Dermalog Identification Systems gmBH, Holy Family Printing Corporation, Microgenesis Software Corporation, and Verzontal Builders, Inc.
They pointed out that despite the delays, the LTO did not impose liquidated damages to Dermalog as required under the contract and Republic Act No. 9184, the Government Procurement Reform Act , or pre-terminate the contract despite existing grounds to do so. They also asked the SC to issue an order directing Dermalog to turnover to LTO the database containing all data owned by LTO, particularly data of motor vehicles and driver’s license.
Of the 166 enhancements pointed out by the DICT, the German firm is seeking more than P600 million in payments for one-third of them.
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