Why LTO is not yet in position to pay ‘Stradcom debt’

In his Dec. 11 column, Peter Wallace wrote that the Land Transportation Office (LTO) has not paid Stradcom the P5 billion it owes under their contract (“Pay your bills,” Opinion). This statement may give the wrong impression that the LTO is at liberty to dispose this amount.

Wallace may not know that the P5-billion debt is the subject of an interpleader case initiated by the LTO itself, to determine which of the two contending groups in Stradcom is entitled to the amount. This case is being litigated at the Regional Trial Court of Quezon City. The RTC has, in fact, ordered the LTO to deposit the

P5 billion with the court. The P5-billion debt thus cannot be paid to any of the contending factions in Stradcom, except through a final and executory court order.

That is why even if it wishes to pay its P5-billion debt to Stradcom, the LTO is legally barred from doing so until the final resolution of this court case.

—ALMA MALLONGA,

Siguion Reyna,

Montecillo & Ongsiako, Attorneys and Counsellors-At-Law, 4th & 6th Floors, Citibank Center,

Paseo de Roxas, Makati City