RTC issues injunction vs delivery of driver's licenses, LTO chief Mendoza outlines options.

The Land Transportation Office (LTO) is being forced to stick to the status quo on the issuance of driver's licenses-a period characterized by delays and backlogs-as a local court issued a writ of preliminary injunction against its supply contract for plastic cards.

At a news conference on Monday, LTO Chief Vigor Mendoza II said a Regional Trial Court (RTC) of Quezon City has issued the injunction, preventing Banner Plasticard Inc. and the regulatory body from exercising the supply contract.

'The preliminary injunction is not yet effective because the court has ordered the petitioners, AllCard, to provide an injunction bond of P6 million. As of now, the bond has yet to be provided, so the writ of preliminary is not yet effective,' he said.

To recall, Allcard Inc., the bidder that failed the post-qualification process for the said deal, sought the issuance of a stay order against the deal, citing 'grave abuse of discretion regulating in lack or excess of jurisdiction to post disqualify petitioner Allcard, despite being the lowest calculated bidder and consequently to question the award of the contract to respondent Banner Plasticard Inc.'

A local court issued a stay order against the LTO against the award of the license card supply contract. The temporary restraining order lapsed after 20 days.

However, since the writ of preliminary injunction will be in effect 'until the case has been resolved with finality or if the court orders that they are junking the injunction,' the LTO will be forced to delay the issuance of driver's licenses anew.

'If the injunction becomes effective, we will not be able to cater the current usage. What we can only cover now is the backlog of May and June,' Mendoza said. 'If this preliminary injunction becomes effective, then we will be forced to go back to the status quo.'

He explained that currently, the LTO is on track to process 600,000 cards for October-for the current usage of 30,000 cards per day, as well as the backlog for April.

Banner has been able to supply the LTO with 1.9 million cards to date, just 3.3 million pieces shy from the 5.2 million cards to be delivered.

'Our supplier continues to deliver until the injunction has been effective. So what will happen? We will be forced to extend...