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WHEREAS, the Constitution declares that a public office is a public trust and all public officers and employees must at all times be accountable to the people, serve them with utmost responsibility, loyalty and efficiency, act with patriotism and justice, and lead modest lives.

WHEREAS, while there are statutory provisions and Civil Service rules governing the ethical conduct of government officials and employees, there is a need to adopt norms of conduct that are specific to the personnel of the Land Transportation Office (LTO) in view of the special nature of their duties and responsibilities.

NOW, THEREFORE, the LTO hereby promulgates this

Code of Conduct for Officials and Employees of the Land Transportation Office

Article I
Coverage

SECTION 1. This Code of Conduct for Officials and Employees of the LTO shall apply to all personnel of the agency, permanent, temporary, casual, co-terminus and contractual, including but not limited to the Assistant Secretary, Executive Director, Regional Directors, Assistant Regional Directors and Service Directors.

Article II
Fidelity to Duty

SECTION 1. LTO officials and employees shall not use their official position to secure unwarranted benefits, privileges or exemptions for themselves or for others.

SECTION 2. LTO officials and employees and their families shall lead modest lives appropriate to their positions and income. They shall not indulge in extravagant or ostentatious display of wealth in any form.

SECTION 3. LTO officials and employees shall not discriminate by giving special favors to anyone. They shall not engage in nepotism nor allow kinship, rank, position, creed or religion, or favor from any party to influence their official acts, duties and functions.

SECTION 4. LTO officials and employees shall not accept any remuneration other than what they are entitled to in their official capacity.

SECTION 5. LTO officials and employees shall refrain from having any pecuniary interest directly or indirectly with any insurance company (specifically on acquisition of mandatory Third Party Liability Insurance for motor vehicle registration). Private Emission Testing Centers, Drug Testing Centers and other similar private service providers.

SECTION 6. LTO officials and employees shall not accept or process any transaction with incomplete or insufficient mandatory supporting requirements.

SECTION 7. LTO officials and employees shall use office properties and funds in their custody in an official and judicious manner and solely in accordance with the prescribed statutory and regulatory guidelines or procedures.

SECTION 8. LTO officials and employees shall in no case engage in fixing activities, otherwise they shall be considered as fixer-employees. For purposes of this Code, a fixer-employee is a person who, for a consideration other than his usual salary, performs outside of his official function the following acts in behalf of an individual, organization/association, partnership, corporation or any other entity:

a. Registration of Motor Vehicles
b. Issuance of Driver’s License and Conductor’s
c. Apprehension and Adjudication of Traffic violations
d. Accreditation of MAIDs (Manufacturers, Assemblers, Importers and Dealers), Driving Schools, Driving Instructors and Physicians
e. Authorization of PETCs (Private Emission Testing Centers)
f. Any similar transaction involving other private service providers

SECTION 9. LTO officials and employees shall not engage in any unauthorized fundraising and solicitation activities nor organize foundations and private institutions to be used as front to circumvent the law that prohibits engaging in activities involving personal gain or conflict of interest.

SECTION 10. LTO officials and employees shall not solicit directly or indirectly gifts and/or benefits for themselves or for others which may influence their official func- tions or which might be reasonably perceived as influencing or improperly relating to the performance of their official functions.

Article III
Transparency of Transactions

SECTION 1. It is the collective responsibility of the Sectoral Head, regional directors, assistant regional directors, agency heads and other employees concerned to ensure that procurement of supplies, equipment, infrastructure projects and other related activities are in line with the ISO 9001:2000 quality management system and in accordance with the provisions of RA No. 9184, otherwise known as the Government Procurement Reform Act, and its Implementing Rules and Regulations and other related issuances.

SECTION 2. It is the responsibility of the heads of the LTO field offices to display or post in conspicuous and strategic areas of their respective workplaces the required flow of prescribed procedures and the required documents, fees and charges for each transaction for public information.

SECTION 3. It is the responsibility of the regional directors, assistant regional directors, agency heads and other personnel concerned to establish information systems and networks that will effect the widest possible dissemination of information regarding the policies, rules and regulations, other programs and projects of the office.

Article IV
Conflict of Interest and Divestment of Interest

SECTION 1. LTO officials and employees shall avoid conflict of interest in the performance of official duties. They are required to exercise utmost diligence in transactions bearing of conflict of interest, in disclosing conflict of interest to the proper authority, and in terminating the same as it arise.

A. A conflict of interest exists when:

1. The official’s or the employee’s objective ability or independence of judg- ment in performing official duties is impaired or may reasonably appear to be impaired directly or indirectly because he/she has substantial interest in a business which has dealings or with pending transactions with LTO or the pursuit of which depends on the approval of the LTO.

2. The official or employee, his/her immediate family, his/her common-law relations or his business or other financial interest would derive financial gain because of his/her official acts.

B. No conflict of interest exists should any benefit accrue to the official or employee as a member of a profession, business or group to the same extent as any other member of such profession, business or group who does not hold a position in LTO would benefit.

SECTION 2. When a conflict of interest arises, the official or employee involved shall resign from his position in any private business enterprise within thirty (30) days from his/her assumption of office and/or divest himself/herself of his/her shareholdings or interests within sixty (60) days from such assumption. For those who are already in the service, and conflict of interest arises, the concerned must resign from their position in the private business enterprise and/or divest themselves of their shareholdings or interests within the periods herein above provided, reckoned from date when the conflict of interest arose. The same rule shall apply where the public official or employee is a partner in a partnership or the owner of a sole proprietorship.

Article V
Enhancement of Administrative Systems

SECTION 1. The LTO Central Office and all of the regional offices shall conduct skills training and value development programs for their respective officials and employ- ees in order to enhance their skills, to strengthen their commitment to public service and to help promote efficiency and primacy of general welfare over personal interests in the performance of their duties. Such trainings and programs shall include, among others, the following subjects:

a. Ethical and Moral Values
b. Rights, Duties and Responsibilities of Public Servants
c. EHEM! – AHA! Seminar-Workshop
d. Service Excellence Seminar-Workshop
e. 5S Seminar-Workshop
f. ISO Awareness Seminar-Workshop
g. Anti-Graft and Corruption Seminar

SECTION 2. The LTO Central Office and all regional offices shall conduct continuing studies and analysis of their systems and procedures to improve the delivery of quality public service in accordance with ISO 9001:2000 quality management system. Such studies and analyses shall:

a. identify systems and procedures that lead or contribute to negative bureaucratic behavior;
b. simplify rules and procedures to avoid red tape; and
c. devise or adopt measures that promote client satisfaction, enhance employee morale and increase productivity.

SECTION 3. It is the responsibility of the sectoral head and the regional/assistant regional directors to ensure that officials and employees attend the skills training and value development program and participate in parallel skills or value development efforts.

Article VI
Incentives and Rewards System

Incentives and rewards shall be granted to officials and employees who have demonstrated exemplary service and conduct on the basis of their observance of the norms of conduct laid down in the Civil Service Commission (CSC) approved Program on Awards and Incentives for Service Excellence (PRAISE) copy of which is hereto attached as Annex “A”*.

Article VII
Incorporation of Other Rules

All provisions of Republic Act No. 6713, otherwise known as the Code of Conduct and of Ethical Standards for Public Officials and Employees, laws, Civil Service rules, and administrative issuances governing or regulating the conduct of public officers and employees applicable to the LTO are deemed incorporated into this Code.

Article VIII
Filing of Complaint

SECTION 1. Any complaint against an LTO official or employee pursuant to this Code should conform to the procedural requirements under the Uniform Rules of Administrative Cases in the Civil Service.

SECTION 2. The administrative aspect of the complaint referred to in Section 1, Article VIII, shall be initially investigated by the Regional Administrative Action Board (RAAB) for regional complaints and Internal Affairs Unit, Office of the Assistant Secretary for central office in accordance with existing rules and regulations of the Civil Service Commission. The criminal aspect of the case shall be referred to the Office of the Ombudsman for appropriate proceedings.

SECTION 3. All acts and omission of public officials and employees prescribed in the Constitution; the prohibited acts and transactions provided in Sec. 7, R.A. 6713 and those in Sec. 46, Chapter 7 of Book V of Executive Order No. 292 and other pertinent civil service laws, shall form the grounds for administrative disciplinary action under this Code.

Article IX
Effectivity

This code shall take effect fifteen (15) days following its publication thereof in a newspaper of general circulation and approved copies must be filed at the UP Law Center.

Adopted: 29 Dec. 2005

(SGD.) ANNELI R. LONTOC
Assistant Secretary