IT operations at LTO to halt on August 12 — Stradcom

(Updated 11:27AM): The government and the information technology services provider of the Land Transportation Office seemed to have locked horns over the latter's supposed unpaid taxes, putting the licensing and vehicle registration office's operations at a peril. 

 

Transportation Secretary Joseph Emilio Abaya said in a text message to GMA News Online, “I think  they (Stradcom Corp.) will pay as originally agreed upon and have good faith, and I'm hoping that they will continue operations”

 

Abaya's statement's came on the heels of  Stradcom's  statement that its operations at the LTO will grind to a halt on August 12, Monday because of a garnishment order from the Bureau of Internal Revenue.

 

In a letter to Abaya, Stradcom president Cezar Quiambao said the BIR will cripple their IT services to their LTO.

 

“Stradcom cannot over emphasize the gravity of such warrant having been served upon the company, because it effectively cripples the operations of the company as it commands the distraint of the personal properties (ex. bank accounts), and levy of the real properties of Stradcom, and then to further sell and/or forfeit the same in favor of the Republic to satisfy P488.377 million in alleged 2011 deficiency income taxes of the company,” Quiambao said.

 

The Stradcom president added that the LTO owes them over P4 billion because LTO has not been making regular payments of fees due them for  almost three years now.

 

Quiambao asked Secretary Abaya to intervene “to avert this crisis and lift the foregoing force majeure conditions noting that the stoppage of operations...of Stradcom and LTO will affect vital public services that generate about P1.5 billion in monthly revenues for the government.”

 

He admitted that Stradcom received P1 billion in payment last January, but also said that that payment “was not enough to trigger the income tax due for the subject calendar year.”

 

Stradcom also disputes BIR's computation of the taxes due. Quiambao said the P317 million the BIR assessed them for would apply if they had received P2.2 billion from the LTO.

 

The DOTC extended Stradcom's contract with the LTO while the bidding for a new P8.2-billion road information technology project is in progress.

 

The DOTC said LTO's 13-year-old IT system is unable to sufficently implement the agency's regulation mandate. The new IT system the DOTC seeks is one that would help hasten the recovery of stolen vehicles, trace smuggled vehicles, thwart double registration and monitor unregistered vehicles.  — ELR/OMG, GMA News