A national transport association disclosed that the multibillion-peso computer system used by the Land Transportation Office (LTO) remains unable to process several legally mandated transactions despite receiving billions of pesos in government contracts.

The Transportation District Officers Association of the Philippines said the Land Transportation Management System, built by German technology provider Dermalog, cannot process public utility vehicle transactions affecting thousands of operators nationwide.

The group added that the system also fails to handle motor vehicle user’s charge exemptions for diplomats and economic zone locators, as well as the automatic collection of penalties for new registrations.

These disclosures come as the LTO strongly opposes Dermalog’s request to renew its contract and secure an additional P2.5 billion for system upgrades. LTO officials cited unresolved state audit findings and persistent system deficiencies seven years after the project’s launch.

LTO executive director Martin Ontog recently testified before the House Committee on Transportation against Dermalog’s request, pointing to unresolved cybersecurity gaps despite the contractor receiving 13 contract extensions.