The Office of the Ombudsman ordered the six-month preventive suspension without pay of LTFRB Chair Vigor Mendoza II and Office of Transportation Cooperatives Chair Teofilo Guadiz III over administrative charges tied to their previous tenures as Land Transportation Office chiefs.
The case involved the continued operation of the Stradcom-managed LTO information technology system despite the rollout of the government-owned Land Transportation Management System, or LTMS, which was intended to replace the older platform.
In ordering their suspension, the Ombudsman cited strong evidence in the administrative cases for grave misconduct and conduct prejudicial to the best interest of the service.
The Ombudsman linked the continued use of the Stradcom system to an additional Php 13.3 billion in computer fees charged to motorists, according to information released on the suspension order.
The controversy had been under scrutiny before the latest action. In May, transport groups brought complaints before the Ombudsman questioning the continued collection of computer fees and the parallel operation of Stradcom despite the availability of LTMS.
Later that month, the Ombudsman directed the LTO to stop using the Stradcom platform and process transactions exclusively through LTMS. The order cited audit findings and concerns over the absence of a subsisting contract, while noting that more than Php 602.9 million in computer IT fees payable to Stradcom had been collected in 2025 alone.
Mendoza and Guadiz had separately led the LTO before moving to their current posts, with Mendoza now heading the Land Transportation Franchising and Regulatory Board (LTFRB) and Guadiz serving as chief of the Office of Transportation Cooperatives (OTC).
However, the preventive suspension does not constitute a final determination of guilt. The administrative proceedings will determine whether Mendoza and Guadiz are liable for the charges against them.