Stradcom Corporation Responds to Graft Allegations in LTO Transaction

MANILA, Philippines — Stradcom Corporation, a prominent information technology service provider, has firmly rebutted graft allegations concerning its dealings with the Land Transportation Office (LTO). In a statement issued on Friday, the company emphasized that it would pursue “necessary legal steps” to challenge what it describes as “unfounded” accusations.

Background of the Allegations

The accusations stem from a complaint filed by the Federated Land Transport Organizations of the Philippines (FELTOP) with the Office of the Ombudsman. This complaint questions the legality of a P169 computer fee tied to Stradcom’s transactions with the LTO. FELTOP has raised concerns about potential “preferential treatment” favoring Stradcom in its business operations.

Stradcom’s Position

In response to these allegations, Stradcom reiterated the legality of its operations. “The company will take the necessary legal steps to address what appear to be unfounded graft allegations against our company,” the statement read, reinforcing the legitimacy of its arrangement with the LTO.

Stradcom highlighted its commitment to transparency, asserting that its services are backed by a valid, binding, and enforceable concession agreement with the government. “For the record and as a gentle reminder to the public, Stradcom Corporation operates and delivers service to the Land Transportation Office pursuant to a valid, legal, binding, and enforceable concession agreement with the government,” the company stated.

Business Operations and Compliance

Continuing its defense, Stradcom maintained that it fully complies with the terms outlined in its concession agreement, emphasizing its dedication to aiding the LTO in its mission to serve the motoring public. The company expressed its unwavering commitment to operational integrity and compliance with regulatory frameworks.

The P169 computer fee in question has reportedly generated over P169 million, raising eyebrows among transport operators and stakeholders. Critics argue that this fee has unnecessarily added to the operational burden faced by public utility vehicle operators, especially as many are already grappling with rising costs in the transportation sector.

FELTOP’s Concerns

FELTOP represents over 60,000 small and independent public utility vehicle operators across the Philippines. The group asserts that the introduction of such fees exacerbates the financial struggles of its members. The complaint not only targets Stradcom but also involves Vigor Mendoza II, the current chairman of the Land Transportation Franchising and Regulatory Board. Mendoza is implicated for actions allegedly taken during his previous tenure as LTO chief.

In response to the allegations, Mendoza characterized the complaint as “desperation to get even,” indicating he views these accusations as unfounded. The dynamics between FELTOP, Stradcom, and Mendoza reflect ongoing tensions within the industry, particularly regarding the management of fees and operational costs.

CALL FOR ACTION

FELTOP is advocating for a 90-day preventive suspension against Mendoza while the Ombudsman conducts its investigation into these allegations. The transport group is also requesting a full refund of all computer fees collected since January 28, 2025, highlighting the urgent need for accountability and transparency in government-related transactions.

As the investigation unfolds, the implications of this situation will be closely monitored by stakeholders in the transportation sector and the general public alike, raising critical questions about governance, compliance, and the integrity of public service providers in the Philippines.