STRADCOM contract with LTO already expired, but no bidders are willing to take the mantle..after seeing how LTO manhandled STRADCOM. It is still providing IT service in a monthly basis...

Stradcom to stop providing IT services to LTO

ABS-CBNnews.com
Posted at 08/07/2013 6:55 PM | Updated as of 08/07/2013 6:55 PM


MANILA, Philippines - Stradcom Corp. said it will stop providing IT services to the Land Transportation Office nationwide starting Monday.

In a letter to Transportation Secretary Joseph Emilio Abaya, Stradcom president Cezar Quiambao said the company would stop its services for LTO because of the Bureau of Internal Revenue's warrant of distraint against the company.

Quiambao said "by virtue of the issuance and service of such BIR warrant… as our ability to operate is now even further crippled.”

"With the notice, the impairment at anytime of Stradcom’s services to the Republic cannot give rise to a claim by the Republic against Stradcom under our extended LTO IT Project BOO Agreement," he said.

Quiambao pointed out the LTO has failed to make regular payments of fees to Stradcom for the last three years, which now amounts to over P4 billion.

"Stradcom cannot over emphasize the gravity of such warrant having been served upon the company, because it effectively cripples the operations of the company as it commands the distraint of the personal properties (ex. bank accounts), and levy of the real properties of Stradcom, and then to further sell and/or forfeit the same in favor of the Republic to satisfy P488.377 million in alleged 2011 deficiency income taxes of the company," he said.

Quiambao appealed to Abaya to intervene in the case. "May be our last appeal to your good offices to avert this crisis and lift the foregoing force majeure conditions noting that the stoppage of operations of not only Stradcom and LTO will affect vital public services that generate about P1.5 billion in monthly revenues for the government," he said.

On July 31, the BIR garnished the accounts of Stradcom for its alleged failure to settle its income tax. The BIR claimed Stradcom owes P317 million covering tax year 2011, excluding surcharges and interest due.

On the issue of taxes, the Stradcom chief said, "it is the company’s respectful and considered position that the P1 billion payment made to the Stradcom last January was not enough to trigger the income tax due for the subject calendar year."