The House Committee on Transportation learned from a Land Transportation Office (LTO) official Monday, May 25 that the country’s Land Transportation Management System (LTMS) under Dermalog has been operating without active maintenance coverage this year.

During a public hearing at the House of Representatives, LTO Executive Director Martin Ontog says the agency continues to rely on parallel systems to ensure driver’s license, vehicle registration, and other frontline services remain operational nationwide.

According to the presentation made before the congressmen, the LTMS project--procured at a value of more than P3.19 billion--continues to face unresolved operational issues years after its rollout.

This has raised concerns over cybersecurity, system stability, and uninterrupted public service for millions of motorists.

The agency also cited multiple Commission on Audit (COA) observations documenting delays, incomplete functions, and persistent system deficiencies.

LTO officials said several features affecting motorists and transport operators remain problematic, including Public Utility Vehicle (PUV) processing, advance license renewals, automated uploading of medical certificates, and other transaction functions that still require manual intervention.

The agency also disclosed that the LTMS maintenance contract had already lapsed across modules beginning January 2026, with the final module expiring in May. According to the presentation, the absence of an active maintenance agreement means there is currently no contractual patch management, security monitoring, or incident-response coverage in place.

The House panel was further told that Dermalog’s own proposed budget presentation to Congress included approximately P2 to P2.5 billion for cybersecurity upgrades.

For LTO officials, this indicates the major security improvements are still needed for the system.

In the same hearing, the LTO emphasized that its priority was to ensure uninterrupted public service while fully transitioning operational control of the system to the government.

The agency also reiterated that ongoing legal, procurement, and budget limitations prevent it from approving additional payments or settlements without proper congressional appropriation and compliance with existing audit regulations.

Dermalog has previously maintained that it fulfilled its contractual obligations and asserted intellectual-property rights over portions of the system and software involved in the project.

LTO said it remains focused on safeguarding government services, protecting public data, and ensuring continuity of operations for Filipino motorists while the transition and legal processes continue.