LTO IT Contractor, Dermalog, Vindicated; DOJ withdraws charges

LTO IT Contractor, Dermalog, Vindicated; DOJ withdraws charges

The Department of Justice orders the City of Prosecutor of Quezon City to withdraw charges against Land Transportation Office (LTO) IT Contractor Dermalog officals Gunther Mull, Randolf Sitz, Michel Schutt, and Lourilyn Ocampo.

The case stems from the 3.1 Billion peso LTO IT project that was awarded in 2018 to the Dermalog Joint venture which includes German based company Dermalog 40%, Philippine based company Holy Family Printing Corporation 30%, Verzontal Builders 25%, and MicroGenesis 5%. 

Verzontal Builders Inc. represented by Silvestre “Sly” Natividad, failed to accomplish their deliverables based on the joint venture agreement and in April 5, 2019 wrote Dermalog that they are “pulling out of the joint venture” then authorized Dermalog to “deduct whatever costs it may incur to complete its unfinished part of the project.” The Joint Venture headed by Dermalog continued to pay Verzontal Builders 228 Million Pesos for all the work accomplished despite having to incur additional expenses to rectify previous works as well as complete the unfinsihed works.

In the now withdrawn case, Verzontal Builders Inc. alleged they were owed the full 25% of the whole contract even though the project is still ongoing and in effect and despite Verzontal pulling out of the joint venture last 2019 with unfinished works per their agreement.

The Department of Justice as represented by the Secretary of Justice, Jesus Crispin Remulla, ruled that the case filed by Verzontal Builders should not be a criminal case and no elements of the alleged qualifed theft were present in this case.

In the resolution dated July 20, 2022 of the Department of Justice it reads:

“WHEREFORE, the instant petition for review is hearby GRANTED, and accordingly, the assailed resolution of the Office of the CITY Prosecutor of Quezon City finding probable cause against respondents-appealants Gunther Mull, Randolf Sitz, Michel Schutt, and Lourilyn T. Ocampo for the crime of qualified theft is hearby REVERSED and SET ASIDE.”

Multi awarded biometrics innovator, Dermalog, continues providing the Land Transportation Office IT services which has resulted in billions of pesos savings for drivers as well as reduced processing times from over 2-3 hours to 20-30 minutes.

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