Philippines central bank cancels digital ID card contract with ACI

The Philippines’ central bank has cancelled the contract to produce the country’s national digital ID cards, leading to an appeal and arbitration.

AllCard Inc. (ACI) had won a contract with Bangko Sentral ng Pilipinas (BSP) to supply cards and equipment to produce 116 million PhilID cards for the national ID system, PhilSys. BSP has terminated the contract, citing a failure by ACI to deliver enough of the ID cards to continue. The company refused to comply with valid instructions and failed to provide a comprehensive and realistic plan to catch up on card issuance, GMA News Online reports. It also incurred wastage of nearly 7 percent, for above the 1 percent maximum allowed, according to BSP.

The company responded by claiming it has met the conditions of the contract, filing a Motion for Reconsideration, and entering arbitration. The cancellation could result in 60 million digital ID cards which have already been produced being wasted, the company warns.

The PSA, which is responsible for implementing PhilSys, stands behind BSP’s decision.

“The Philippine Statistics Authority (PSA) trusts the assessment and decision of the Bangko Sentral ng Pilipinas (BSP) to terminate its contract with their supplier for the national ID card production,” Mapa said, adding “The PSA is taking necessary measures for the continuous issuance of national IDs.”

Senate Minority Leader Aquilino “Koko” Pimentel III says an investigation must be held into the contract cancellation, though one has not been launched at this time.

Senator Ping Lacson said that “Failure to fully implement the Philippine Identification System Act (RA 11055) six years after its passage is unacceptable,” and recommended sanctions against the company, ABS-CBN News reports.

As of early August, just over 89 million Filipinos had registered with the national digital ID system, according to PSA figures. Just under 53 million PhilID cards had been delivered.

A new self-service option for people to update their PhilSys registration data was launched just weeks ago.

The Philippines went through a public biometrics contract controversy after legislators accused Dermalog of failing to meet its obligations, but their complaints were rejected and that contract remains active.

Article Topics

AllCard  |  digital ID  |  government purchasing  |  identity document  |  national ID  |  PhilID  |  Philippines  |  Philippines Statistics Authority