LTO database maker cries foul over blacklisting

German technology provider Dermalog Identification Systems GmbH has strongly refuted calls for its blacklisting by the Philippine government, asserting that it has met all its contractual obligations for the Land Transportation Management System (LTMS). The company stated that ongoing legal disputes should be resolved by the courts.

In a statement released on August 5, Dermalog addressed allegations made during recent House committee hearings concerning delays, source code retention, and missing database components. The company highlighted that it filed a Petition for a Temporary Restraining Order (TRO) and Injunction on May 11, 2026, to prevent the Land Transportation Office (LTO) from unilaterally terminating their contract.

Dermalog emphasized that public statements about sanctions or blacklisting should be considered within the context of unresolved judicial matters. The company stated it would refrain from commenting on sub-judice issues while pursuing its legal rights.

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In light of the ongoing judicial process, Dermalog believes that public statements concerning sanctions or blacklisting should be viewed in the context of matters that have not yet been finally determined by the courts.

Addressing claims of withholding key system components and the source code, Dermalog maintained that the LTO has always had full possession and operational control of the LTMS database. The company challenged the LTO to identify any specific missing database elements. Regarding the source code, Dermalog clarified that it never refused turnover, noting the contract specifies code transfer upon completion and fulfillment of conditions.

The firm also pointed out that the LTO formally accepted the LTMS in 2021, finding it compliant with the original Terms of Reference. Dermalog attributed implementation delays to factors beyond its control, including the COVID-19 pandemic, varying regional office readiness, data migration issues, and repeated user acceptance testing. Furthermore, Dermalog warned of potential cybersecurity risks after the LTO cut off the firm's technical access to the LTMS production environment following the expiration of its maintenance agreement, hindering critical maintenance and security updates.

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Any suggestion that Dermalog has withheld the database is therefore incorrect.