photo: LTO 

At least one million pieces of plastic cards, which are being used in the printing of driver’s license, were delivered to the Land Transportation Office (LTO) on Monday afternoon, March 25, following the decision of the Court of Appeals that lifted the writ of preliminary injunction earlier issued by a Quezon City court.

LTO chief Assistant Secretary Vigor D. Mendoza II said the one million plastic cards delivered is the first batch of the remaining 3.2 million cards from Banner Plastics, Inc. that were the subject of the injunction order that stemmed from the case filed by the losing bidder, Allcard, Inc.

“We admire and respect the wisdom of the justices of the Court of Appeals in their decision to lift the writ of preliminary injunction. This is a victory for the Filipino people,” said Mendoza.

“Even before, we have been arguing that public interest must always prevail over business interest and in this case, the CA clearly saw the soundness and validity of the arguments we presented through the Office of the Solicitor General,” he added.

Mendoza said this was also the position of Department of Transportation Secretary Jaime J. Bautista, whom he said, was also elated by the CA decision as this would be a big relief to the millions of Filipino motorists who were affected by the injunction order.

What went before

Early in 2023, the DOTr initiated a multi-million bidding for the procurement of 5.2 million plastic cards to immediately address the supply shortage that were already felt by LTO clients through a paper-printed driver’s license and extension of the expiration date. 

Banner Plastics, Inc. won the bidding but Allcard, Inc. filed a case before a Quezon City Regional Trial Court, arguing that it was denied due process when it was disqualified in the bidding process.

In disqualifying Allcard, Inc., the DOTr argued that its basis was the failure of the company to comply with some of its contract with the government. 

The QC RTC Branch 215 first issued a Temporary Restraining Order and later an injunction order for the delivery of the remaining plastic cards. 

Before the injunction was issued, around two million plastic cards were already delivered and the LTO was also on the right track to address the plastic card-printed driver’s license backlog.

The LTO and the DOTr, through the OSG, elevated the case to the Court of Appeals.

What the CA said 

In its decision to lift the writ of preliminary injunction, the Court of Appeals argued that the QC RTC should have not entertained the case in the first place due to the failure of the Allcard, Inc. to comply with the administrative process before seeking court intervention.

It was referring to the process in which the losing bidder should have appealed the disqualification before the DOTr’s Bids and Awards Committee as a matter of proper procedure.

The CA decision, penned by Associate Justice Jose Lorenzo R. Dela Rosa and concurred by Associate Justices Nina G. Antonio-Bautista and Emily Rialiño-Geluz, also stressed the government’s right to reject any and all bids subject to its discretion based on past Supreme Court’s decision.

 What happens now?

The backlog for plastic cards is now at over 2.5 million while the LTO issues 550,000 plastic cards every month.  

Following the CA decision, Mendoza said he has already tasked some LTO officials to coordinate with the Banner Plastics Card, Inc. for the immediate delivery of the plastic cards.

He said the LTO will come up with a new schedule of release of plastic card-printed driver’s licenses in the soonest possible time.

Mendoza also expressed confidence that the backlog on plastic cards for driver’s license will be addressed as early as the second half of 2024, especially that Bautista has already ordered for the immediate bidding process for the procurement of over six million plastic cards under the General Appropriations Act.

Bautista also ordered the LTO to explore everything possible and legal to ensure the speedy procurement of more plastic cards.