The implementation of the Radio Frequency Identification (RFID) system should have the approval of the National Economic and Development Authority (NEDA)’s Board Chairperson, President Gloria Macapagal-Arroyo, but the President was allegedly bypassed.

Former Senator Ralph Recto, who was NEDA secretary general before he quit late last year, said without the approval of the chief executive, implementation of the RFID project is deemed illegal because it failed to go through the required legal processes.

“The implementation of the RFID system is illegal after failing to go through the process prescribed by our existing laws,” said Recto, who is running again for senator under the Liberal Party for the May 2010 elections.

“As it increased fees and charges charged by the LTO (Land Transportation Office) in registering new vehicles, it should have undergone NEDA evaluation to determine its reasonableness,” said Recto.

“If this is being implemented despite the escalating uproar from motorists, is it correct to assume that this has the imprimatur of the President? But if she’s not aware of this, who signed on the dotted lines?” Recto asked.

Recto said the awarding of the project and its hasty execution is suspicious because not only does it ignore President Arroyo; it also disregarded Malacañang’s Memorandum Circular 137-2007.

The circular requires all heads of national government agencies, including government-owned and/or controlled corporations, to seek prior clearance from the NEDA Board before imposing new fees or increasing existing ones.

The multi-billion peso RFID project has been awarded by the government to Stradcom Corporation.

“Who is powerful enough to bypass President Arroyo in the approval of the RFID system? The award of the project and its hasty implementation become even more suspect as we approach the end of the Arroyo administration and the May 2010 elections,” Recto said.

“The memo had been bypassed by the LTO when it proceeded to implement the RFID system at the start of this year, on top of allegations it violated procurement laws because the project was awarded without bidding,” added Recto.

LTO chief Arturo Lomibao said the RFID is a cutting-edge technology that uses radio waves to identify vehicles and transmit related information remotely and in real time.

Lomibao said the system will allow LTO and other law enforcement agencies to access vehicle information to aid in traffic management, law enforcement and crime prevention.