The Office of the Ombudsman has ordered the six-month preventive suspension without pay of Land Transportation Franchising and Regulatory Board (LTFRB) Chairman Vigor Mendoza II and Office of Transportation Cooperatives (OTC) Chairperson Teofilo Guadiz III over the continued use of the STRADCOM-operated Land Transportation Office (LTO) information technology system.

The Ombudsman said the two former LTO chiefs face administrative charges of grave misconduct and conduct prejudicial to the best interest of the service.

In an order dated Aug. 17, the Ombudsman said the continued use of the old system alongside the Land Transportation Management System, or LTMS, resulted in an additional burden on motorists through computer fees collected by STRADCOM.

The Commission on Audit found that the fees amounted to ₱13.379 billion from 2019 to 2025.

The Ombudsman said Guadiz, during his tenure as LTO chief in 2022, pushed for the continued use of the old system and favored STRADCOM. Mendoza, who led the LTO in 2023, later issued memoranda that effectively institutionalized the parallel use of the old system and LTMS.

In January 2025, Mendoza also directed the processing of public utility vehicle registration renewals through the old system without requiring LTFRB confirmation, according to the Ombudsman.

The agency said the continued use of the STRADCOM system showed a disregard of government policy and directives to transition LTO operations to the LTMS.

The preventive suspension was imposed to preserve evidence and prevent possible further malfeasance or misfeasance while the administrative case is pending.