LTO’s chip project ‘bypassed’

With the impending roll-out of the Land Transportation Office’s (LTO’s) radio frequency identification (RFID) system on Oct. 1, former Socioeconomic Planning Secretary Ralph Recto yesterday said the project should not push through since it did not go though the required legal process.

"The RFID project of the LTO, which increases fees and charges, did not go through the National Economic and Development Authority (Neda). Under existing laws, increases in fees and charges must go through Neda evaluation to determine its reasonableness," he noted.

He added the sheer volume of vehicles that will be required to pay the additional fees is "staggering."

For a one-time fee of P350, the LTO expects to raise P1.6 billion in revenues from the project.

"Six million vehicles will be required to pay higher fees on vehicle registration yearly, and 100,000-150,000 new vehicles are registered yearly. Millions of citizens will be affected by the new fees, which further highlight the need for it to undergo the proper process," Recto pointed out.

"If the project has its merits and is imbued with public interest, then there is no harm in subjecting it to the process. The discovery of its beneficial traits will surface during the evaluation phase," he said.

According to him, the LTO cannot "just ram through" the project without the consent of the Neda Board, which is chaired by President Arroyo.

"In effect, whoever is implementing the project must be powerful enough to have the guts to bypass the President," Recto stressed.

Malacañang yesterday reiterated its advice to the LTO to initiate the proper processes before it fully implements the RFID technology on the registration of motor vehicles.

Deputy presidential spokesman for Economic Affairs Gary Olivar said in a media briefing that the LTO, or any other government agencies, should be sensitive on criticisms, particularly coming from the stakeholders.

He also welcomed the statement of Recto that the RFID project of the LTO did not reach or pass the Neda during his term.

According to Olivar, this is a serious issue which needs to be scrutinized to avoid any problem in the future.

He added even if the project has a good intention to solve the "colorum" problem in the public utility sector, there must be a wider consultation before the RFID mode is implemented.

"That would be an issue to look at before implementing. LTO should go through the necessary process," Olivar stressed.

Sen. Francis Escudero urged the government to scrap and re-bid the RFID tags project to allay any fears of irregularity and ensure that the rights of individuals are not abused.

He said aside from privacy issues, questions on the dubious procurement process and the lack of sufficient public consultations on the project have been raised.

"I ask that this project should be scrapped and re-bid to erase any suspicion of irregularity and to address legitimate concerns by various sectors about possible unwarranted state intrusion into their private lives," Escudero stressed.

The RFID chip, which is the size of a computer chip, can hold information on the vehicle and its owner, and can be monitored anytime of the day through the use of RDIF readers.

Escudero said LTO officials should clarify what information will be stored in these RFIDs, saying the unscrupulous in government could use the RFID tags as a means to spy on critics of the administration or for other illegal activities.

"With barely nine months left into its term, this administration should go slow on multi-billion peso projects that give people the impression that it is out on a midnight-deal spree," he said.

Makati Mayor and United Opposition (UNO) president Jejomar Binay said he was also alarmed by LTO plan.

"Under the hands of an administration that spies on critics and plain citizens, the microchips will make spying less obvious and more convenient," he noted.

Binay said it is an open secret that the Arroyo administration spies on its critics, especially the political opposition. "With the microchips, they can easily keep tabs not only on telephone conversations but also the movements of its critics," he added.

A militant lawmaker in the House of Representatives also yesterday filed a resolution directing the House committees on transportation and information and communications technology to investigate the impending implementation of the RFID technology.

Gabriela party-list Rep. Liza Maza said there is neither sufficient information nor public advisory and wide public consultation on the RFID project before its impending implementation next month even as the motorists are the ones to bear the cost of paying the RFID tags.

But the Philippine National Police (PNP) claimed that the use of the RFID technology could help car theft cases in the country.

PNP spokesman Senior Supt. Leonardo Espina, however, said the LTO has not coordinated with the PNP to fully get oriented with the use of RFID. Charlie V. Manalo, Gina Peralta-Elorde and PNA