Ombudsman suspends ex-LTO chiefs over STRADCOM IT system
By Jel Santos
Published Aug 18, 2026 12:54 pm
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Updated Aug 18, 2026 01:21 pm
At A Glance
- * Ombudsman Remulla preventively suspended former LTO chiefs Vigor Mendoza II and Teofilo Guadiz III without pay for six months.
- * The case stemmed from the continued use of STRADCOM's IT system despite the rollout and acceptance of its replacement, the LTMS.
- * COA found that STRADCOM computer fees from 2019 to 2025 reached P13.3 billion, placing an additional burden on motorists.
(MB FILE PHOTO)
Ombudsman Jesus Crispin “Boying” Remulla has preventively suspended former Land Transportation Office (LTO) chiefs Vigor Mendoza II and Teofilo Guadiz III over the continued use of STRADCOM’s IT system and the resulting P13.3 billion in additional computer fees.
The Office of the Ombudsman (OMB) suspended Mendoza, who now heads the Land Transportation Franchising and Regulatory Board (LTFRB), and Guadiz, the current Office of Transportation Cooperatives (OTC) chairperson, without pay for six months or while their administrative case remains pending.
In an order dated Aug. 17, the OMB found sufficient grounds to suspend Mendoza and Guadiz, citing “strong evidence showing their guilt” in the administrative charges of grave misconduct and conduct prejudicial to the best interest of the service.
“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 ruling stated.
The Ombudsman said Mendoza and Guadiz were suspended to protect documents and evidence that may be under their control or custody and prevent the possible commission of further malfeasance or misfeasance in office.
“The Order is immediately executory,” the anti-graft body added.
According to the OMB, the complaints center on the continued use of STRADCOM’s LTO IT system despite the government’s implementation and acceptance of its replacement, the Land Transportation Management System (LTMS).
The order cited the Commission on Audit’s (COA) finding that operating both systems in parallel resulted in the “non-maximization of the benefits” expected from the LTMS project.
Per COA, computer fees charged by STRADCOM from 2019 to 2025 amounted to P13,379,196,499.73, causing an “additional burden and expense for the transacting public.”
STRADCOM began operating the LTO’s computer systems and other transaction-processing infrastructure under a Build-Own-Operate Agreement signed with the government in 1998, the OMB noted.
The then Department of Transportation and Communications (DOTC), now the Department of Transportation, issued STRADCOM a Final Certificate of Acceptance in February 2003.
The agreement’s original 10-year concession period ended on Feb. 10, 2013, but it was subsequently extended from month to month.
In 2016, the LTO and STRADCOM signed a Phase Out Agreement that allowed the old system to remain operational while the agency had no new or replacement IT system that was fully operational nationwide.
The government then contracted a joint venture led by Dermalog Identification Systems GmbH in 2018 to develop and deliver the 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.
Following its implementation and rollout, the LTMS became the government’s principal platform for motor vehicle registration, licensing, and related transportation transactions. LTO operations were also directed to gradually transition away from the STRADCOM-operated system.
The anti-graft body said the transition, however, did not fully take place.
According to the order, Guadiz “pushed for the continued use of the LTO IT System” and “favored STRADCOM” as LTO chief in 2022, saying “the old IT System provides a better solution.”
The Ombudsman said that Mendoza issued several memoranda during his term as LTO chief in 2023, “effectively reviving and institutionalizing the continued use of the LTO IT System through a parallel utilization alongside the LTMS.”
The OMB said Mendoza directed the processing of public utility vehicle registration renewals through the old system in January 2025 without requiring LTFRB confirmation.
The Ombudsman said the parallel use of the systems resulted “in the continued generation and collection of computer fees despite the expiration of the BOO Agreement” for STRADCOM.