The Office of the Ombudsman has ordered the six-month preventive suspension without pay of two transport officials over alleged irregularities involving the continued use of the Land Transportation Office’s (LTO) Stradcom IT system.

In an order issued 17 August, the Ombudsman suspended Land Transportation Franchising and Regulatory Board Chairperson Vigor Mendoza and Office of Transportation Cooperatives chief Teofilo Guadiz III, both former LTO officials.

Ombudsman investigators found sufficient grounds to charge the two with grave misconduct and conduct prejudicial to the best interest of the service over the continued use of the older LTO IT system despite the rollout of the Land Transportation Management System (LTMS).

“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 order stated.

The investigation also found that continued use of the older system allegedly resulted in motorists paying an additional P13.3 billion in computer fees from 2019 to 2025.

Stradcom entered into a contract with the government in 1998 to establish and operate the LTO’s IT system, receiving a Final Certificate of Acceptance from the Department of Transportation in 2003.

The LTO and Stradcom later entered into a phaseout agreement as the government contracted German firm Dermalog Identification Systems GmbH to develop the LTMS.

Despite the LTMS project’s completion in 2021, investigators said Mendoza and Guadiz continued using the older system through “parallel utilization,” maintaining that it was more effective.

The Ombudsman also cited Mendoza’s 2025 directive to process public utility vehicle registrations through the older system without prior approval from the LTFRB.

Assistant Ombudsman Mico Clavano stressed that the preventive suspension does not constitute a penalty.

“The preventive suspension is intended not as a penalty but to preserve documents and evidence and prevent possible further malfeasance or misfeasance in office. The order, as indicated, is immediately executory,” Clavano said.

‘Opportunity to clear my name’

Mendoza said he had yet to receive a copy of the order but respected the Ombudsman’s decision.

He said the proceedings would provide a “good opportunity” to clear his name and defend his actions as former LTO chief.

“I have yet to see the copy of the official order and once received, this will serve as the basis to reiterate my position, and present evidence-backed legal arguments that all my actions when I was still the LTO Chief were all for the protection and interest of not only the motorists but also the Filipino people,” Mendoza said.

Guadiz has yet to publicly respond to the development.