LTO not authorized to use daily collection for production of driver’s licenses, number plates

A ranking official at the Land Transportation Office (LTO) clarified that the agency cannot use its daily collection as its own funds to produce driver’s licenses and number plates.

The statement came following the shortage on supply of plastic cards that the LTO is experiencing.

According to LTO Finance Division Chief Marivic Lopez, the collection is being remitted on a daily basis to the Bureau of Treasury.

The official also noted that the yearly allocation only comes from what the national government has approved in the General Appropriations Act (GAA). The aforementioned funding is meant to be utilized on the LTO’s operations and raw materials that it will be needing.

 “The LTO is not authorized to retain funds collected/received from the day-to-day operations. All funds collected are remitted the following day. Ang pondo ng LTO ay galing sa GAA at hindi galing sa daily collections (The LTO funds come from GAA and not from daily collections),” Lopez was quoted as saying.

In addition, the agency reiterated that the cause of the declining supply of plastic cards for licenses and the impending depletion of license plate supply is not the lack of funds but on the delayed procurement or purchase of raw materials.

In recent history, the LTO acquired a second plate-making robot that is capable of producing 450 motorcycle plates per hour. It is housed within the plate-making facility that was put up in April 2018 to expedite the production and distribution of license plates, which was outsourced in the past.

Relatedly, the Department of Transportation (DOTr) is studying the agency-to-agency procurement in possibly addressing the shortage on supply of plastic cards for driver’s licenses.

In a separate statement, the transportation secretary Jaime Bautista is coordinating with the National Printing Office due to the latter’s technical capabilities.

The department said that the probable solution is still in its “exploratory stage.”

 

Based on the existing laws and regulations, the Central Bids and Awards Committee (BAC) needs sufficient details on the targeted measure before finalizing the “agency-to-agency arrangement” that would come in the form of a memorandum of agreement.

The DOTr noted that an ongoing competitive bidding for the license cards is taking place. The deadline to submit opening bids is until May 24, 2023.

Photos from Department of Transportation, Ruben Manahan IV, Land Transportation Office

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