LAND Transportation Office chief Vigor Mendoza II’s continued non-implementation of the transition agreement with IT firm Dermalog from the old system to the new one, not only deprives the Filipino public state-of-the-art application system, but is feared to be scaring off foreign investors, its spokesperson claimed.
Worse, Dermalog spokesperson Atty. Nikki de Vega said in a press conference that it’s endangering the $4-billion pledges by German companies to the Philippines.
Mendoza’s continued disregard to LTO’s contract with the IT company, which is partly-owned by the German government, is jeopardizing existing German investments in the country and scaring off potential incoming investors, she emphasized.
“There’s no legal impediment on the part of Dermalog as we’ve 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 .
Contracted by LTO in 2018, Dermalog is a German company that provides biometric security solutions, including fingerprint scanners, identity cards, and border control systems not only in the Philippines but in many countries.
With Dermalog’s advanced technology, the LTMS is a portal for driver’s license applications and other administrative processes that can easily be accessed even on ordinary cellular phones.
It may be recalled that German companies pledged on March 12 last year some $4-billion (P220 billion) worth of investments to the country.
President Ferdinand Marcos Jr. lauded the pledges made by the German companies, noting that the Philippines seeks to boost economic ties with ’like-minded’ nations.
Germany has consistently ranked as a top trade and investment partner, and 2023 was a record-breaking year. Foreign direct investment from Germany soared to a staggering $149.89-million, the highest since 2005.
Germany also noted the consistent increase in bilateral trade turnover in recent years and recognized the Philippines as a production and sales hub for German companies in ASEAN and the Asia-Pacific region.
“But with Dermalog’s experience in the present LTO leadership, German companies may likely pull away their pledges,” De Vega warned.
