The Supreme Court was due to release a resolution on the petition seeking the nullification of the P3.19 billion Land Transportation Office (LTO) digitalization project awarded to German contractor Dermalog.

The petition was filed by Gerald Domingo and lawyer Jose Carlito Montenegro, noting the allegedly flawed agreement is a threat to national security and a breach of information privacy.

The Land Transportation Management System (LTMS) was envisioned to integrate all LTO services such as the issuance of driver's license and transport permits, and registration of motor vehicles, among others, into a single database and digital platform.

But Dermalog allegedly failed to deliver in full the contract's requirements despite substantial payment made by the LTO, amounting to 80 percent of the P3.19 billion deal.

Records showed that Dermalog had similar problems with clients in Indonesia and several other countries.

LTO chief Vigor Mendoza II said it would be for the best interest of the government if the LTO would take over the digitalization task instead of extending Dermalog's contract.

Supreme Court records showed that no restraining order was issued and the petition had been submitted for resolution on its merits.

The petition asked the High Court to order the LTO to file appropriate administrative and criminal cases against its officials and employees involved in the alleged anomalous project.

"Our IT experts are capable of operating and maintaining the system. In fact, they remain on the frontline in ironing out all that needs to be done in order for us to fully utilize the system," Mendoza said.

He said a technical working group was created to facilitate the agency's digitalization process.