To thwart corruption, LTO goes for online payments

When a government office has had enough of its notorious “under the table” transactions, it takes away the table, and even the corrupt hands, out of the equation. And that is possible by going virtual.

That’s what the leadership at the Land Transportation Office (LTO) has resorted to. Right now, the payment processes for new vehicle registration is now done online in some LTO offices. In the pipeline is online payment for renewal of driver’s licenses, renewal of registration of motor vehicles, and payment of fines for traffic violations.

“This technology-driven innovation in the payment collection system for new motor vehicle registration has significantly reduced human intervention in the cash management system. This translates to decreased opportunities for corrupt practices in payment, and a more efficient payment collection,” LTO Assistant Secretary Edgar C. Galvante said in a statement.

LTO-National Capital Region West Regional Director lawyer Clarence V. Guinto said in a statement on August 14, that the agency, through the LTO-NCR West, “was able to collect a total of P1.117 billion since the introduction (of online payments) in October 2018, up to June 2019.”

The LTO uses the Landbank Electronic Payment Portal (LBP-ePP), an alternative payment channel allowing clients to pay via the internet.

Currently, the online payment system is being implemented in LTO NCR West and Regional Office 3. Other regional offices are seen to follow suit soon.

LTO-NCR West complemented the LBP-ePP, with an online assessment system called the LTO Electronic Payment Assessment Tool (LTO-ePAT), a facility that automatically computes the exact amount due for a 3-year registration.

Guinto said that the online payment program is a concrete step towards achieving its goal of “OR/CR/Plaka, bago lumabas sa casa,” releasing the vehicle’s official receipt/certificate of registration, license plate, and RFID to owners at the point of sale.

“The use of the online facility has significantly reduced the processing time of registration from seven days, to three.”

He said these web-based applications have facilitated the assessment and payment of new registration for motor vehicle and motorcycle dealers, thus, the reduced processing time for initial registration of vehicles.

These initiatives are in compliance with Republic Act 11032, or the “Ease of Doing Business and Efficient Government Service Delivery Act of 2018” that aims to reduce processing time, cut bureaucratic red tape, and eliminate corruption in public service.

The cashless modern facility transaction is the first of its kind not only in the LTO but in the Philippine bureaucracy.

Galvante said the LTO-NCR piloted the online payment system project, in cooperation with selected car dealers in the region, last October 2018.

He further emphasized that the issue of the delay in the issuance of ORs, CRs and plates has been addressed through the online payment system.

The online payment system was made possible through a memorandum of agreement with LBP and the Bureau of Treasury signed last December 1, 2017.

Another tripartite MOA was inked last August 17, 2018 with Galvante, then LBP President Alex V. Buenaventura, and BTr Treasurer Rosalia V. de Leon for the program’s nationwide implementation.

Under the new DOTr-IT System, the mode of payment will be expanded to include all banks, payment centers, payment kiosks, and such.

In the pipeline is the online payment for other transactions, such as the renewal of driver’s licenses and motor vehicles, and payment of fines for law enforcement violations.