40 LTO offices under investigation for illegal Transfer of Ownership modus

As a motorist, one of the most frustrating and time-consuming transactions you’ll have to experience with the Land Transportation Office (LTO) is the Transfer of Ownership.

As the word implies, this is the process of transferring the deed of a used vehicle or a motorcycle from the previous owner’s name to your name. Based on our experience here at Autoindustriya.com, it’s full of outdated and repetitive processes, it’s very costly, and very time-consuming. You can read our Transfer of Ownership horror story here.

Now, it seems that this transfer of ownership is also a source of corruption within LTO, as the agency uncovered a modus operandi that involved 40 of its district offices.

Just recently, the LTO has launched an investigation into approximately 40 of its district offices following intelligence reports of alleged illegal ownership transfers of motor vehicles—vehicles that were previously seized in police operations.

LTO Chief, Assistant Secretary Atty. Vigor Mendoza II announced that "notices to explain" would be issued to the heads of these district offices. The Philippine National Police (PNP) has characterized these illicit transfers as “technical carnapping.”

According to LTO, Asec. Mendoza became aware of the alleged scheme during ongoing coordination between the LTO and the PNP, which was aimed at enforcing traffic regulations and pursuing individuals and groups engaged in illegal activities using motor vehicles. During their meeting, it was reportedly established that certain LTO district offices were involved in unauthorized processing of Cancellation of Transfer of Ownership and the Duplication of Certificates of Registration.

Mendoza adds that this modus involves illegally transferring ownership of recovered vehicles to new individuals. This process includes the issuance of new Duplicate Certificates of Registration along with documentation designed to simulate a legitimate transfer.

“We already informed DOTr Secretary Vince Dizon of this modus and his instruction is clear: to identify and ensure that airtight criminal and administrative charges will be filed against those involved in this illegal activity… We will not let this pass. We will not allow the LTO to be used in illegal activities such as this,” said Mendoza.

Administrative charges, which carry penalties including dismissal, may be filed based on misconduct under Civil Service rules and LTO Memorandum Circular No. MC-91-137 (dated June 6, 1991), as well as for violations of the LTO Citizen Charter.

Based on LTO data, 15 of the reported illegal ownership transfers of seized vehicles occurred in the CARAGA Region (Northeastern Mindanao). Additionally, 8 cases were noted in Region 9 (Zamboanga Peninsula); 4 each in Region 2 (Cagayan Valley) and Region 11 (Davao Region); 2 each in Region 1 (Ilocos Region), Region 3 (Central Luzon), and Region 10 (Northern Mindanao); and 1 each in Region 4A (CALABARZON), Region 8 (Eastern Visayas), and the Cordillera Administrative Region.

“We will be issuing show cause orders against the new registered owners of these motor vehicles,” stated Mendoza, as the agency had already identified the vehicles involved in the illegal transfer of ownership modus.

The LTO Chief vowed to ‘zero tolerance’ approach to illegal activities and ensured that all those involved would be punished to the full extent of the law.