“In a world of open and free flowing information, interconnectivity is crucial and vital to all industries and sectors. It is used widely by governments all over the world.”
by Ducky Paredes
My first driver’s license – when I was 18 – was negotiated by a shadowy character at a branch of the Land Transportation Office (LTO) and it took several weeks before it was released; it was valid only for a year and could be renewed only at the same LTO office.
Last year (decades later), up for license renewal, I went to an LTO office far from Manila and received my new five-year driver’s license within an hour.
The one primarily responsible for this is the LTO’s exclusive IT provider Stradcom Corporation that has been overseeing the LTO’s “interconnectivity projects” since 1977.
In a world of open and free flowing information, interconnectivity is crucial and vital to all industries and sectors. It is used widely by governments all over the world.
The United States Department of Motor Vehicles or DMV, the equivalent to our LTO, has a database containing data on millions of motor vehicles and driver’s license holders. This database has open access to all government agencies that may need any information. For instance, the DMV database is interconnected to the FBI and local police agencies to help them track down criminal offenders. With the click of a mouse, an FBI agent or local law enforcer can download information about a motor vehicle or driver’s license holder from anywhere in the United States and use the information to apprehend suspects or present evidence in court .
This is the model which the LTO envisioned for its IT system, a database that can be accessed by government agencies and by the private sector for lawful use. In the 1997 Terms of Reference for the public bidding of the LTO IT system which was won by Stradcom Corporation, one of the objectives of the project was to “provide for the interconnectivity among the central, regional, district and field offices of LTO as well as the provision of interconnection for other government agencies as well as the private sector” .
Yet, at each step taken by the LTO towards greater connectivity, it always has its share of those who would stop LTO from moving forward and moving on. Is this normal resistance to change or is this because new technology displaces certain shadowy players?
Clearly these are the long time syndicates that have thrived in the LTO for so long, preying on motorists who only want to speed up the process of registering their car and renewing their driver’s license. These syndicates that have been operating in the LTO are displaced by technology that minimizes human intervention and virtually eliminates opportunities for illegal activities.
Below are the Interconnectivity Projects and the possible groups that resist them:
Interconnectivity with the Insurance Industry, specifically those providing Comprehensive Third Party Liability (CTPL) insurance was borne out of an urgent need to stop the growing problem of fake insurance policies and policies that were issued to multiple vehicles. This problem puts motorists at a disadvantage because the insurance policy issued to them (they will findc when they finally need insurance) was either fake or was also issued for other vehicles.
To curb this problem, the LTO and DOTC instructed its IT provider Stradcom to develop a solution that would ensure two things: one to one correspondence between an insurance policy and a vehicle; and that all insurance policies are from accredited insurance companies and agents as approved by the Insurance Commission.
Who’s affected? Unscrupulous insurance agents who overcharge the motorists and sell fake insurance policies.
Another aspect is the interconnectivity with the Private Emission Testing Center System (PETCs). After the passage of the Clean Air Act, mandatory emission testing was imposed by the LTO as a requisite to yearly registration. However, during the first years of implementation, fake Certificates of Emission Compliance (CECs) were rampant. For a solution, LTO again turned to technology and interconnectivity. It required all PETCs to interconnect with the LTO’s exclusive provider, Stradcom to ensure that all certificates are electronically transmitted and verified by the system.
Who loses? Owners of smoke belching public utility and private vehicles and emission testing centers that allow non-appearance for emission tests
Interconnectivity has also been established with the MMDA. Prior to the MMDA-LTO Interconnectivity, drivers apprehended by the MMDA simply filed for lost licenses with the LTO to avoid paying the corresponding penalties for traffic violations and the need to retrieve their confiscated licenses. With the interconnectivity in place, drivers with pending violations must settle first with the MMDA before they can be issued a new license, just as is done in other countries.
Who’s affected? Kotong Cops and rampant traffic violators.
Imagine that, in the old days, there was no interconnectivity even between the LTO and the LTFRB, which are both agencies of the DOTC! Thus, the problem of colorum vehicles has always been a big headache. Government has long tried to address this but has always failed.
Now, both the LTO and Land Transport Franchising Regulatory Board (LTFRB) are confident that technology will play a major role in eradicating colorum through the interconnectivity of the LTO and LTFRB. In the past, even PUVs without valid franchises could get registered with the LTO because confirmation and verification was done manually and was prone to human intervention. (In fact, I know of several illegal taxis that operate under the radar by running mostly at night. Now, they can’t even get registered anymore.)
With interconnectivity, franchises can be verified electronically and in real time so only PUVs with valid franchises will be registered by the LTO.
According to 1-Utak party list congressman Vigor Mendoza, this interconnectivity will greatly ease the burden of registration for PUV operators and drivers because now they will be able to transact at any LTO office, unlike in the past where they had to spend so much money and time to bring vehicles to LTFRB and then back to LTO just to confirm their franchise and register their vehicles. Says Mendoza: “Interconnectivity is a must if we want to ease the burden of our legitimate PUV operators and drivers. We must do this know.”
Colorum operators and drivers are the affected ones.
The LTO-Stradcom partnership in which Stradcom makes possible what the LTO wants to happen is one of the better things that has happened to this country.
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Now, a word on the RFID ( Radio Frequency Identification) tag that would cost us motorists P350 fee for an RFID tag valid for 10 years.
Your P350 will pay for not just for the sticker but also for the readers, hardware, software, maintenance, services and others. So if you reduce the costs, what remains is P240, the P110 goes to the government (treasury, VAT, LTO IT training fund, capacity building, etc.). The net income of Stradcom per tag is only about P15. That translates to P1.50 a year for 10 years!
Compared to license plates and registration stickers, RFID tags are impossible to replicate. Each RFID tag all over the world is unique and is controlled by an industry organization called Electronic Product Code Global (EPC Global). This organization ensures that every RFID tag in the world is assigned a unique ID and therefore RFID tags cannot be pirated or duplicated. This is certified by ISO 18000-6C.
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hvp 07.18.10
One Comment
Hello Ducky,
I have been following your columns through online and your recent one has caught my attention to share my views. I absolutely agree that we should upgrade our system especially in having an interconnectivity, you have already discussed it thoroughly but I just want to reinforce it. First, when you have this interconnectivity, we can fast track our services to the public. In my experience here in New Zealand, when I renew my car registration at any post office here it only take 3-5minutes to complete and apart from this, we can also do it online with the NZ Transport web site. Second, the system cannot process your car registration if you did not submit your car for WOF(warrant of fitness). All the accredited motor shop that conduct WOF has an interconnectivity with th NZ Transfort as well as the accredited agency like our post office here. Finally, we can really trace the owner of every car on the road.
It is good that you write something that will lead us forward and eliminate those unscrupulous people, violators, kotong cops and the likes. I just hope our Philippine government will have the initiative to adapt this system.
More power to you.
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