License shortage caused by external reasons, according to LTO

According to an interview with LTO Chief Jay Art Tugade, the reason behind the shortage of plastic license cards is due to a "special order" from the Department of Transportation (DOTr) that instructed all agencies under its wing to handle and undertake procurements of PHP 50M and above through the Central Bids and Awards Committee of the DOTr. Since the required budget to replenish stocks of the plastic cards goes above that amount, the LTO is unable to order a restock.

Tugade ordered an inventory in November 2022 and predicted that the cards would likely run out by May 2023. He instructed all committees in charge of procurement within his agency to move forward with procurement, but the DOTr's special order hindered the procurement process. Tugade mentioned that good governance is the basis for the special order, and the LTO asked DOTr Secretary Jaime Bautista to maintain procurement responsibilities with them, but it was allegedly denied.

Tugade acknowledged that the request for procurement could have been done earlier and mentioned that existing officials within DOTr were already in office since mid-2022, and if they had wanted to conduct early procurement activities, they should have done so instead of waiting until now. The procurement process had no movement since then, and Tugade expressed his concerns to DOTr Sec. Bautista on the procurement delay during a meeting on March 21, 2023. The DOTr committed to finishing the procurement in 28 days during that meeting, but it has not yet been fulfilled.

The deadline for submission of bids for the procurement was originally on April 24, but it was extended by 30 days to May 24 due to the alleged requests of some participants who had questions during the pre-bid conference. Reports say that the DOTr will have the cards replenished by July at the earliest, and Tugade hopes that they will meet this commitment.

Meanwhile, the LTO has issued temporary driver's licenses and extended the validity of driver's licenses expiring on April 24, 2023, to October 31, 2023, while waiting for the cards to be restocked and licenses printed. The agency has also conducted briefings with all LTO partners on accepting and honoring temporary licenses and extended-validity driver's licenses.

Tugade emphasized the need for urgency in procuring plastic cards and highlighted that an estimated 5.2 million drivers are affected by the shortage. While there may be various reasons for the delay, Tugade suggests that problems like this should have been and could be avoided. For now, he asks for patience while the LTO and DOTr work to resolve the issue.