Supreme Court stops government from implementing RFID project

A status quo order has been handed down by the Supreme Court (SC) stopping the government from implementing its radio-frequency identification (RFID) decal contract which is expected to raise more than P1.6 billion for the Land Transportation Office (LTO) this election year.

“The prevailing situation prior to the filing of the petition is now restored until further notice. This is to prevent irreparable damage to the parties,” SC spokesman Jose Midas Marquez said.

The order was issued in a petition filed by Bayan Muna Reps. Satur Ocampo, Teodoro Casiño, Anakpawis Rep. Joel Maglungsod, Gabriela Women’s Party Rep. Liza Maza and Pagkakaisa ng mga Samahan ng Tsuper at Operator Nationwide (Piston) against DoTC and LTO officials from enforcing RFID project.

The petitioners said the project violated the provisions of Republic Act (RA) 9184 or the Government Procurement Reform Act requiring all government procurements to be done through competitive public bidding.

The petitioners argued that RFID project does not fall within the exceptions or alternative methods of procurement provided under RA 9184.

Groups from the public transportation industry is asking the SC) to dismiss a petition challenging the legality of the controversial RFID program of the government.

In a motion, the groups — Federation of Jeepney Operators and Drivers Association of the Philippines (Fejodap), Alliance of Transport Operators and Drivers Association of the Philippines (ALTODAP), Land Transportation Organization of the Philippines (LTOP), NTU-Transporter, Pasang-Masda Nationwide Inc. and Alliance of Concerned Transport Organizations (ACTO) — claimed a favorable ruling by the high court on the RFID would greatly benefit the public transport sector.

“Oppositors-Intervenors are so situated in these proceedings that a resolution of this honorable court dismissing the petition will directly and immediately benefit them, while a resolution granting this petition will adversely affect them by failing to reap the benefits of the program,” the groups’ seven-page motion read.

Under the RFID project, all vehicles would be required to install stickers containing a microchip that stores vehicle information.

For a one-time fee of P350, the LTO plans to install the RFID tags on some 4,760,593 vehicles which is expected to raise P1.6 billion in revenues.

The RFID tag, which is intended to last for 10 years, will be procured from Stradcom Corp.

The main reason, according to them, why they are supportive of the RFID is that the program will diminish, and eventually eradicate, the operation of colorum or out-of-line public utility vehicles.

They stressed the operation of colorum vehicles is adversely affecting the daily income of legitimate drivers with franchise since these illegal vehicles are also competing with them in the roads.

Furthermore, they divulged that the RFID program could also eradicate “mulcting” by corrupt law and traffic enforces who have been victimizing drivers of public utility vehicles, notably jeepney drivers.

“Oppositiors-Intervenors, on behalf of its members, respectfully prays they be permitted to intervene in the instant case on the ground that they are directly and actually affected by the benefits of the implementation of the RFID Tag program, giving them legal interest in the subject matter under litigation,” they said.

Last month, four party-list representatives and a militant transport group asked the SC to declare null and void for being unconstitutional the RFID project set to be implemented by the DoTC and the LTO.

The existing information technology contract between the LTO with Stradcom, according to the petitioners, cannot be used as the basis in awarding the RFID project to Stradcom being two different contracts.

Under the IT contract, Stradcom will own, operate and maintain all IT facilities while the LTO continues to handle the processing of all transactions.

Furthermore, the petitioners claimed the RFID project violates Republic Act 6975 as amended by Republic Act 7718 or “An Act Authorizing the Financing, Construction, Operation and Maintenance of Infrastructure Projects by the Private Sector and for Other Purposes.”

They contended that the RFID project was hatched without prior approval of the National Economic Development Authority. –Benjamin B. Pulta, Daily Tribune