PH feared losing $4 billion investments over biometrics row in LTO
DESPITE receiving a “cold shoulder treatment” from Land Transportation Office (LTO) chief Asst. Secretary Vigor Mendoza II, Information Technology (IT) firm Dermalog is still willing to “sit down and talk” with the agency’s chief executive for the good of the country.
Atty. Nikki de Vega, Dermalog spokesperson, said the continued disregard of their contract with the IT firm is not a healthy development for the government.
In a press conference held in Quezon City yesterday, De Vega said it does not only deprive the Filipinos of a state-of-the-art and high-tech transport application but is feared to be scaring off foreign investors, thus endangering the $4 billion pledges by German companies to the Philippines.
Dermalog, a partly-owned by the German government, provides biometric security solutions, including fingerprint scanners, identity cards, and border control systems used by many countries including the Philippines.
On March 12, 2024, German companies pledged to put up P220 billion worth of investments in the Philippines.
No less than President Marcos Jr. lauded the gesture of the German firms as he noted that the Philippines seeks to boost economic ties with “like-minded” nations.
When asked to comment about Mendoza’s alleged claims that “mahirap kausap ang Dermalog,” De Vega replied; “Di nga kami kinakausap, paano mangyayari yon” adding that their office is just a “stone’s throw away” from the LTO chief’s office.
Dermalog official said Mendoza’s continued shrugging-off attitude is actually jeopardizing existing German investments in the country and at the same time scaring off potential incoming German investors.
“There is no legal impediment on the part of Dermalog as we have won the bidding fair and square. No less than the Philippine government has affirmed that Dermalog’s system is better and more efficient than the old system,” de Vega said, debunking the concerns over the legality and propriety of the Land Transportation Management System (LTMS).
Dermalog’s contract is expiring this December (2025.)
LTO Chief Mendoza II has debunked the allegation of German company Dermalog that he is favoring the old IT system over the new system.
“This is not true,” Mendoza said in a statement.
According to the LTO chief, since he assumed the top agency post in July 2023, one of his priorities is to go fully digital in order to ensure fast and comfortable transactions for millions of their clients – from the application to renewal of driver’s license and motor vehicle registration to all the other services.
