Despite criticisms license plate production goes on – LTO

Despite the public outcry over delays in issuing car license plates, the production and delivery of the plates will go on, the Land Transportation Office (LTO) said, while industry leaders agree over the necessity of keeping up with the demand for public safety.

 

"Tuloy-tuloy ang paggawa ng new car plates. Nadi-deliver naman ng contractor 45 days after the registration of vehicles, barring any problems,” Jason Salvador, LTO spokesperson, said in a telephone interview. 

 

There are no specific deadlines set by the LTO for the contractor to deliver the license plates along the lines of the migration to the new plates, but the government continues to do follow-ups, Salvador noted.

 

Shipping problems were among the causes of delays since the new car plates are imported from the Netherlands, prompting the Commission on Audit (COA) to ordered the LTO to stop paying the contractor amid allegations of inexperience and financial incapacity.

 

Industry leaders believe the LTO vehicle registration system aims to facilitate timely issuance of proper vehicle papers and license plates.

 

In a statement, the Association of Vehicle Importers and Distributors (AVID) said it supports the LTO and the Department of Transportation and Communication (DOTC) in enforcing provisions of the Traffic Code on motor vehicle registration.

 

"We have urged our members to ensure compliance with this policy, particularly in the context of rising demand for automobiles arising from a generally positive outlook on the growth of the automotive industry in the future," " the statement read.

 

 This statement was issued by the office of  AVID president Ma.  Fe Perez-Agudo, who is also the chairperson of Hyundai Asia Resources Inc.

 

HARI is one of the 12 members of AVID.

 

The new car plates are being manufactured in the Netherlands, where J. Knieriem b.v. (JKG), the partner of Filipino contractor, Power Plates Development Concepts Inc., operates a factory. 

 

Power Plates and JKG won the contract for the LTO Motor Vehicle Plate Standardization Program, which entails the production and delivery of about 5.23 million pieces of plates for motor vehicles and 9.97 million for motorcycles from July 2013 to June 2018.

 

The P3.8-billion, five-year contract and aims to eradicate counterfeit plates and purge the LTO data bank of falsified records.

 

“This is for the public’s own protection,” said Transportation and Communication Secretary Jose Abaya.

 

Abaya earlier said the dismissal by the Supreme Courts of a petition questioning the program's budget is proof of the legality of the contract.

 

Congress had appropriated P3.8 billion under the 2014 budget for the five-year contract.

 

Power Plates is a company registered with the Philippines with the Securities and Exchange Commission (SEC). Its managing director is Christian Calalang.

 

Its own Facebook page describes the company as “an authorized license maker of the Philippine Government,” and that it has been operating for 15 years.

 

On its partner's website, JKG is this announcement: “Just recently JKG has officially been awarded the PhP3.85 billion (EUR 65,000,000) contract for the supply of the new Philippine number plate program for the next 5 years.” – VS, GMA News