Palace agrees to reconsider LTO’s RFID project

No less than Malacañang on Friday called on the Land Transportation Office (LTO) to reconsider its microchip program for vehicles due to alleged irregularities, after former socioeconomic planning chief Ralph Recto said the project did not undergo the proper legal process. "That would be certainly be an issue especially if it comes from someone like former Secretary Recto. That is an example of an issue that ought to be looked at and discussed more thoroughly," deputy presidential spokesman Gary Olivar said. “Bigyan natin ng konsiderasyon yung mga comment, mga pagpuna, pagtutol na inilabas mula sa iba’t ibang grupo (Let us give consideration to comments, criticisms and objections aired by various groups)," Olivar added. The project will require vehicles to carry Radio Frequency Identification (RFID) microchips, which will cost a P350 one-time fee per motorist. In his earlier statement, Recto said the RFID project did not undergo proper evaluation from the National Economic and Development Authority (NEDA) as required by law. Recto said under Memorandum Circular 137-2007 of the Office of the President, the heads of national government agencies and government-owned and controlled corporations are required to get clearance from NEDA before they impose new fees or increase existing ones. He added that a similar NEDA memorandum, Circular 01-2008, also requires all businesses to undergo the agency's evaluation before applying any fee augmentation. "The evaluation of new or increased fees or charges needs to be coordinated with stakeholders to ensure that rates are just and reasonable and to minimize if not avoid unintended impact on established national priorities and the general public," he said. In a television interview, LTO chief Arturo Lomibao explained that it was not necessary for NEDA to evaluate the project because RFID was merely an “enhancement" of the Department of Transportation and Communication’s information technology project in 1998 with Stradcom Corporation. Lomibao said that LTO former Chair Alberto Suansing endorsed the RFID project to the DOTC, which in turn concurred based on a study by their legal department. This study concluded that the project did not require bidding because “it is just an enhancement LTO IT project," he added. Suansing also welcomed any moves by critics to challenge the legality of the project.
For the latest Philippine news stories and videos, visit GMANews.TV Aside from Recto, several sectors on Thursday also expressed misgivings on the pending implementation of the project. Bayan Muna Rep. Teddy Casiño said in a radio interview that the P2.45 billion project appeared like a “midnight deal" because it did not go through a public hearing. Gabriela party-list Rep. Liza Maza, for her part, said the RFID program might be used to violate the right to privacy of individuals. Pinagkaisang Samahan ng Tsuper at Opereytor Nationwide (Piston) secretary general George San Mateo also rejected the project, saying the government could use the chips to track down drivers who participate in protests. He said that the P350 installation fee will be an added burden to drivers. Lomibao denied that there was no public consultation. He said they have conducted dialogues with several transport groups and the project was even endorsed by transport group party-list 1-Utak. Nonetheless, Lomibao said he is open to reschedule the project’s implementation to give more time for dialogues with its critics. “We are supposed to implement this in October, but looking at the views of some sectors of the public, then I said we are open for more dialogues," he said. He however said that the date adjustment is subject to DOTC Secretary Leandro Mendoza’s approval. Lomibao also allayed fears that RFID chips would be used to spy on motorists. He said the devices that will be used to read data on RFID chips will have a “limited range" of 10 meters. He added that the RFID technology is not a new one and has been used in other countries. - GMANews.TV