LTFRB chair Mendoza, OTC chief Guadiz suspended over LTO IT system

Vigor Mendoza II and Teofilo Guadiz III, both former LTO chiefs, had allowed the continued use of the Stradcom Corporation-operated system alongside the government’s newer Land Transportation Management System

AT A GLANCE

• Vigor Mendoza II and Teofilo 'Jojo' Guadiz III have been suspended for six months due to their roles in allowing the continued use of the Stradcom-operated system alongside the new Land Transportation Management System (LTMS), resulting in motorists being charged an additional P13.3 billion in fees.
• The Ombudsman said Mendoza and Guadiz disregarded government policy aimed at transitioning to the LTMS, with reports indicating that the parallel operation of the systems led to fraud opportunities and additional costs for motorists.
• Mendoza expressed respect for the Ombudsman's decision and sees it as an opportunity to clear his name.

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MANILA, Philippines – Land Transportation Franchising and Regulatory Board Chairman Vigor Mendoza II and Office of Transportation Cooperatives chief Teofilo “Jojo” Guadiz III have been placed under six-month preventive suspension, the Office of the Ombudsman announced on Tuesday, August 18.

Mendoza and Guadiz, both former Land Transportation Office (LTO) chiefs, were suspended over their roles in allowing the continued use of the Stradcom Corporation-operated system alongside the government’s newer Land Transportation Management System (LTMS).

The parallel use resulted in motorists being charged an additional P13.3 billion in computer fees from 2019 to 2025, according to the Ombudsman’s order and a Commission on Audit (COA) report.

“The continued utilization of the LTO IT System by Guadiz and Mendoza demonstrates a patent disregard of established government policy and prior official directives intended to transition LTO operations to the LTMS,” the Ombudsman said in its ruling.

Mendoza said in a statement that he respects the decision of the Office of the Ombudsman. “This will be a good opportunity for me to prove it, and eventually clear my name, in the proper forum,” Mendoza said, adding that he has yet to see the official order.

Rappler has also reached out to Guadiz for comment, but he has yet to respond, as of posting. This story will be updated once he responds.

In April 2024, Rappler reported that the parallel use of the two systems enabled opportunities for fraud and cost motorists billions of pesos each year.

COA likewise flagged the continued parallel operation of the systems, saying it resulted in the “non-maximization of the benefits” expected from the LTMS project.

The audit agency found that motorists shouldered an “additional burden and expense” from computer fees charged by Stradcom, totaling P13,379,196,499.73 between 2019 and 2025.

How the old system continued

The government and Stradcom entered into a Build-Own-Operate Agreement in 1998 for the establishment and operation of computer systems and other infrastructure used to process LTO transactions nationwide.

The then-Department of Transportation and Communications issued Stradcom a Final Certificate of Acceptance in February 2003. Its original 10-year concession expired on February 10, 2013, but the arrangement was subsequently extended on a month-to-month basis.

In 2016, the LTO and Stradcom signed a Phase Out Agreement, allowing the old system to remain in use until the LTO had a fully operational replacement.

Two years later, in 2018, the government contracted a joint venture led by Dermalog Identification Systems GmbH to develop and deliver a new LTO core system, now known as the LTMS.

The LTO issued a certificate of project completion and final acceptance for the LTMS in 2021.

After its rollout, the LTMS became the government’s principal platform for vehicle registration, driver’s licensing, and other LTO transactions. The agency was supposed to gradually transition away from the Stradcom-operated system.

The Ombudsman, however, found that Guadiz and Mendoza continued to support the use of the old system.

During Guadiz’s stint as LTO chief in 2022, the Ombudsman said he “pushed for the continued use of the LTO IT System” and favored Stradcom. Guadiz reportedly said the old system “provides a better solution.”

In 2023, while Mendoza was LTO chief, he issued several memoranda that the Ombudsman said “effectively reviv[ed] and institutionaliz[ed]” the parallel use of the old system alongside the LTMS.

In January 2025, Mendoza also directed the processing of public utility vehicle registration renewals through the old system without requiring confirmation from the LTFRB.

In October 2025, Malacañang announced the reshuffling of top officials in key transportation agencies. Mendoza was assigned to LTFRB, succeeding Guadiz. Guadiz was appointed as OTC chairman.

In October 2023, President Ferdinand Marcos Jr. suspended then-LTFRB chief Guadiz due to “alleged corruption under his leadership.” Barely a month later, he was reinstated to his post. – Rappler.com