Still no physical National ID: BSP terminates contract with supplier for failure to fulfill commitment
The Bangko Sentral ng Pilipinas (BSP) has terminated its contract with the supplier of the National ID cards for failing to fulfill its commitment.
The Philippine Statistics Authority (PSA), which is leading the implementation of the National ID, confirmed that the BSP has canceled its contract with All Card Inc. (ACI), which was also involved in the driver's license mess last year.
“The PSA trusts the assessment and decision of the BSP to terminate its contract with their supplier for the national ID card production,” national statistician Dennis Mapa told The Philippine STAR on Viber.
GMA News, citing a Notice of Decision to Terminate Contract, reported that the BSP informed ACI of the Monetary Board's decision dated Aug. 15 to terminate the contract for the “supply, delivery, installation, and commission of Lotus 1 Lot Lease of Card Production Equipment for a period of three years."
The deal also includes provisions for technical and maintenance support personnel, training of BSP/PSA personnel, as well as supply and delivery of raw materials, consumables, and wear-and-tear spare parts for 116 million pieces of PhilID cards.
According to the contract, the BSP said ACI failed to "deliver any or all of the goods specified in the contract, amounting to more than 10% of the contract price —with ACI’s failure 'to delivery enough raw materials within the specified period, even within the extension granted' and the supplier also failing to 'maintain the production machinery due to unavailable machine spare parts causing prolonged machine downtime.'"
It also said that ACI was unable to "perform other obligations under the contract" and "comply with valid instructions."
In addition, the company did not "timely provide a comprehensive and realistic catch-up plan."
Such failures resulted in almost 7% wastage, which grossly exceeded the 1% maximum allowable maximum wastage.
The central bank said cumulative liquid damages due from ACI have reached over 10% of the contract price as of June 30.
BSP Governor Eli Remolona previously told reporters that the central bank terminated the contracts after the supplier was not able to deliver its commitments.
“This is a real problem," Remolona said. "We are negotiating for damages and at the same time we are looking for a new vendor for this contract."
The ACI filed a motion for reconsideration with the Monetary Board. The case will go into arbitration following the company's filing.
The PSA said it's taking the necessary measures for the continuous issuance of the physical cards.
Mapa noted that there's a digital format of the National ID.
Senate Minority Leader Koko Pimentel, meanwhile, is seeking to investigate the termination of the contract between the BSP and ACI.
Pimentel noted that it would mean further delay in the making and delivery of National IDs.
The National ID system was initiated in 2018 during the Duterte administration. It aims to provide valid proof of identity for Filipino citizens and resident aliens of the Philippines. It's meant to integrate processes, systems, and services.
To date, around 88.98 million Filipinos have already registered and about 53 million physical IDs have already been delivered. (with reports from Louise Marueen Simeon)