Ombudsman Jesus Crispin “Boying” Remulla has called on the Land Transportation Office (LTO) to sever its ties with long-time information technology provider Stradcom Corporation. Instead, Remulla urged the agency to focus its efforts on upgrading the government-operated Land Transportation Management System (LTMS).
During his radio program on Saturday, Remulla firmly pressed the LTO to terminate its long-standing relationship with the private IT firm.
“Ang pakiusap ko lang, itigil na nila ‘yang kalokohan na Stradcom. Itigil na nila,” Remulla said.
The Ombudsman emphasized that the government should prioritize enhancing the LTMS to resolve lingering operational inefficiencies, rather than depending on external systems.
“Ayusin natin ‘yung ating Land Transportation [Management] System. ‘Wag na puro computer fee ang kukunin mo, tapos ang gulo. Maraming multiple license, ang daming peke. Sinasadya nila ‘yung butas para may palusot. Tama na iyon, itigil na iyon,” he said.
Remulla disclosed that he had already personally discussed the matter with LTO Chief and Assistant Secretary Markus Lacanilao, advising him to review the agency’s transactions with the company.
“Kinausap ko pa si Lacanilao. Sabi ko, tigilan na ‘yan, tama na ‘yan. Kumita na ‘yan, tama na.”
He further alleged that Stradcom has amassed billions of pesos through its government contracts over the years.
“More than ₱15 billion ang kinikita ng Stradcom diyan, ewan ko lang kung nagbayad sila ng tax. Baka hindi lang ₱15 billion, mga ₱22 billion.”
The Ombudsman’s statements follow a series of controversies involving Stradcom’s IT services in the transportation sector.
In May, transport advocacy group Coalition 169 filed complaints before the Office of the Ombudsman against several current and former Department of Transportation (DOTr) and LTO officials.
The complaints—which include allegations of graft, grave misconduct, gross neglect of duty, and conduct prejudicial to the best interest of the service—stemmed from the questionable extension of Stradcom’s contract.
Among those named in the complaints were former Transportation Secretary Vince Dizon, former LTO chief Vigor Mendoza, and incumbent Transportation Secretary Giovanni Lopez.
Johnny Gomez, a member of Coalition 169, questioned why the government continues to utilize Stradcom despite having rolled out the LTMS, which was specifically designed to modernize and centralize public transportation transactions.
The complainants also argued that certain DOTr officials failed to verify if Stradcom still possessed the legal authority to operate, asserting that the company’s mandate effectively ended when the LTMS was introduced a decade ago.
The allegations are currently under investigation by proper government authorities.