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Tuesday, 18 August 2026

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Ombudsman Suspends LTFRB Chair and OTC Chief Over IT System Fees

Vigor Mendoza II and Teofilo Guadiz III face a six-month suspension for allowing the use of an old IT system that incurred additional fees for motorists.

Ombudsman Suspends LTFRB Chair and OTC Chief Over IT System Fees
Photo: Kotoviski photograph by Henryk Kotowski · Wikimedia Commons · CC BY-SA 3.0

The Office of the Ombudsman has issued a preventive suspension for Vigor Mendoza II, the Chairman of the Land Transportation Franchising and Regulatory Board (LTFRB), and Teofilo Guadiz III, the Chairperson of the Office of Transportation Cooperative (OTC). This decision follows their roles as former chiefs of the Land Transportation Office (LTO).

According to reports, the suspension lasts six months and is unpaid. The action is linked to the continued use of an IT system operated by Stradcom Corporation, which reportedly charged motorists an additional P13.3 billion in computer fees.

State auditors have criticized the extended use of this old IT system, prompting the Ombudsman's intervention. The decision underscores issues with the administration of transportation technologies in the country.

Ombudsman Suspends LTFRB Chair and OTC Chief Over IT System Fees
Photo: Enricokamasa · Wikimedia Commons · Public domain

Mendoza stated that he respects the Ombudsman’s decision despite not having received an official copy of the suspension order as of the announcement.

Both officials had previously been criticized for the allowances made regarding the IT system usage during their tenure as LTO chiefs. Mendoza and Guadiz are now facing scrutiny over their actions and decisions regarding this matter.

The implications of this suspension are significant for both officials, as the Ombudsman’s action highlights deeper concerns about the existing transportation infrastructure and regulatory practices in the Philippines.