Public sector digital ID contracts for Net Group, KOMSCO, Fujitsu

Contracts have been awarded to Net Group in Estonia, and Korea’s state printer in Costa Rica to support the rollout of digital identity and apps. Meanwhile reports suggest Fujitsu is in line for a digital ID card contract in the UK., despite its role in the Horizon IT software scandal.

Fujitsu could win UK digital ID contract despite Post Office scandal

Fujitsu is expected to win a contract to run one part of the United Kingdom’s national digital ID card – despite pledging not to bid for new government contracts over a scandal connected to faulty software used by the UK Post Office. The winner of the contract will be in charge of a system to scan digital IDs to check smartphone owner’s age, according to The Telegraph.

In January, Fujitsu apologized for its role in the Post Office scandal, which was caused by its software Horizon IT. The software created false shortfalls in the accounts of thousands of subpostmasters, leading to convictions of 900 postal workers between 1999 and 2015.

As part of its apology, the Japanese company promised not to compete for public sector contracts for two years but Fujitsu says that the tender process for the digital ID project began before it made the pledge. The company received a preferred bidder status in January 2023.

“The tender process for this work started in May 2022 and Fujitsu submitted a bid in response to the tender in June 2022. The tender process and being selected as preferred bidder pre-dated the guidelines that Fujitsu has put in place regarding bidding for new work with customers in the public sector,” the company says.

The three-year digital ID contract is likely to be worth less than £1 million (US$1.2 million) but could pave the way for selling hardware such as supermarket cash registers, one of Fujitsu’s businesses.

Meanwhile, the Horizon IT scandal is still under government inquiry. Industry body the Age Verification Providers’ Association (AVPA) recommended that Proof of Age Standards Scheme (PASS), the government-backed scheme which is handling the contract, consider the inquiry’s findings before making its decision. The findings are expected to be published later this year.

The scandal started unraveling in 2009 after a media investigation was published into the mistakes that have led to innocent postal workers’ convictions. The case culminated in a lawsuit against the Post Office in 2017 which has paid out £153 million (US$193.4 million) to claimants by the beginning of 2024.

In January, Fujitsu’s European boss Paul Patterson said his “gut feel” was that staff at the company knew about problems with Horizon for years. Only 93 convictions have been overturned and thousands of people are still waiting for settlements.

Estonia names its digital identity app developer

Estonia has chosen a developer for its 800,000 euro (US$866,700) digital identity mobile app mRiik (mState) – homegrown software company Net Group.

The app is expected to be completed in 129 days after which a launch date will be announced, Estonian public broadcaster ERR reported on Friday. Net Group has previously worked on the app.

“The goal was to have an application in the hands of the test group that was always up and running and covered with the necessary code and security updates. To this end, RIA paid €72,900,” says Bret-Maria Rikko, spokesperson for the country’s Information System Authority (RIA).

The Estonian government has been hit with criticism over delays in the app’s launch and an expensive change of plans.

The mRiik app was originally supposed to be based on Ukraine’s Diia app. The Information System Authority, the agency in charge of the project, paid a total of 810,000 euros (US$877,700) to Ukrainian developer EPAM Digital with funds from the East European Foundation and the state budget.

In February, however, the Ministry of Economy Affairs and Communications abandoned the project, announcing the country would create its own app and outlining new procurement plans. Minister Tiit Riisalo has argued that the switch was “part of the learning process.”

The project is funded by the European Union’s structural funds.

RIA has previously hired authentication company Cybernetica to analyze the architecture of the country’s digital ID wallet and its compatibility with the country’s digital ID ecosystem.

Costa Rica is getting its digital ID inspiration from Korea

Costa Rica will collaborate with Korean state-owned company KOMSCO on digital identification. KOMSCO (Korea Minting, Security Printing & ID Card Operating Corp.), which produces banknotes, coins, ID cards and passports, is planning to share its expertise on mobile IDs with the Latin American country.

The company introduced Korea’s blockchain-based mobile ID system K-DID, based on self-sovereign Identity (SSI). Korea started rolling out mobile IDs in 2020, followed by mobile driver’s licenses in 2022 and veteran certifications in 2023. The country is planning to launch a national mobile ID in 2024.

The Korean government has also been pitching K-DID to the Philippines as a solution to boost the reliability and transparency of its digital government system.

Article Topics

Costa Rica  |  digital ID infrastructure  |  Estonia  |  Fujitsu  |  government purchasing  |  KOMSCO  |  mRiik  |  Net Group