LTO to pay Stradcom after Torres takes leave

source: mb.com.ph

MANILA, Philippines- The Land Transportation Office (LTO) will pay its multimillion debt to the information technology firm Stradcom Corporation once Assistant Secretary Virginia Torres formalizes her leave of absence as LTO chief.

Acting Department of Transportation and Communications (DoTC) Secretary Aristotle Batuhan said unless Torres' 60-day leave is formalized, Assistant Secretary Racquel Desiderio cannot take over as LTO officer-in-charge.

Batuhan, who is also undersecretary for Legal and Comptrollership, said the LTO must pay Stradcom for services it has rendered to the agency, such as providing information technology services and maintaining the LTO's database for motor vehicle registration and drivers' license holders.

According to Stradcom executives, LTO owes at least P1.17 billion since Torres withheld payments to the company in November 2010, when a corporate dispute erupted between the factions of Cezar Quiambao and Bonifacio Sumbilla.

Torres' camp maintained that it will not release payment to Stradcom until the court decides who between Quiambao and Sumbilla is the rightful owner and president of the company.

“Whatever is unpaid will be immediately paid only if the proper procedures, including Assec Torres LTO to pay Stradcom after Torres takes leaveformally filing her leave of absence, are being complied with,” Batuhan said.

But Batuhan refused to comment on how soon the payment could be made, saying Desiderio will have to familiarize herself first with the escrow account, which holds in trust the LTO's withheld payments to Stradcom.

“We will also ask Stradcom to refile the bills so that we will have an idea how much is really due of them,” he said.

source: mb.com.ph