Philippines rejects calls to cancel Dermalog biometrics contract

An attempt by two Members of Congress in the Philippines to pressure the country’s Land Transportation Office into cancelling a biometrics contract with Dermalog have been unsuccessful, reports the Inquirer.

Dermalog was contracted to supply biometrics for the Land Transportation Management System (LTMS), a portal for driver’s license applications and other administrative processes, as part of a joint venture in 2018 for P3.4 billion (roughly US$61 million).

Rep. Romeo Acop alleges that Dermalog violated two of the country’s procurement rules by failing to meet delivery deadlines despite 13 extensions, reports the Manila Standard. He and Rep. Rodante Marcoleta told LTO to cancel the contract, with Marcoleta suggesting that because Dermalog has refused to give the LTO the LTMS source code while the contract is active, cancelling its contract would restore control over the project to the agency. Acop argues that the delays amount to 1.119 billion Philippine pesos ($20 million), which over 10 percent of the contract amount, a threshold which can be used as criteria to rescind a public contract.

The Standard reported that LTO Chief Assistant Secretary Vigor Mendoza II said he was pursuing legal steps to cancel the contract, but the Inquirer reported the same day that a decision had been made not to cancel the contract.

“Our hands are full in terms of further improving our services and in delivering what needs to be delivered to our kababayan (citizens),” Mendoza said in an LTO statement. “All of these are our priority right now.”

He also referred to an arbitration clause in Dermalog’s contract as a possible barrier to any change.

The LTMS had a 70 percent utilization rate when Mendoza took over last July, which has risen to 97 percent currently.

A coalition of transportation and governance advocate groups in the Philippines wrote an open letter accusing Mendoza of delaying the switch to the new, Dermalog-supported LTMS last month.

Department of Transportation Secretary Jaime Bautista confirmed on Sunday that Dermalog’s contract will not be terminated.

Meanwhile, the House transportation committee Acops chairs is reviewing an online payment platform associated with the LTMS, questioning why a single payment platform was implemented to handle LTMS fees.

Article Topics

biometrics  |  DERMALOG  |  government purchasing  |  Philippines