ACI pushes back on Philippine national ID card contract cancelation

The Philippine government’s national ID system has come under scrutiny, as the Bangko Sentral ng Pilipinas (BSP) faces criticism for terminating its contract with AllCard Inc. (ACI), the main supplier responsible for producing the physical ID cards with digital identity verification capabilities. The move has led to a backlog in the distribution of national IDs, leaving millions of Filipinos without their cards. Various stakeholders have since voiced concerns, calling for a deeper investigation and offering solutions to the issue.

The Philippines’ central bank canceled the contract to produce the country’s national digital ID cards just weeks ago, leading to an appeal and arbitration.

ACI, the firm responsible for producing the national ID cards, also publicly responded to the BSP’s decision to cancel its contract. ACI asserted that the backlog could be resolved within 12 months if the BSP reversed its contract termination, GMA News Online reports. The company attributed the delays to the central bank’s decision to switch to polycarbonate material for the IDs, which required recalibration of equipment and adjustments to the production process.

ACI also emphasized its commitment to the project, citing its production of various other secure identification documents and its ability to meet demands when properly supported by the BSP, Inquirer reports. Despite these reassurances, the BSP remains firm in its decision to sever ties, citing its dissatisfaction with the delays.

Lawmaker push for investigation

In light of the situation, several groups have called for further investigation into the BSP’s handling of the contract. The Infrawatch PH think tank publicly urged the Philippine government to probe the termination of the digital ID card deal, expressing concern over the procurement process and potential legal consequences. According to the group, transparency is essential to ensuring accountability, particularly given the national ID system’s role in enhancing public services.

Senate Minority Leader Aquilino “Koko” Pimentel III earlier mentioned that he was putting together a resolution that will entail asking the Senate to investigate the contract termination, in a bid to avoid further delays.

Banks express skepticism over new IDs

Adding to the controversy, the banking sector has also raised concerns regarding the BSP’s newly produced national IDs. Financial institutions have reportedly been reluctant to fully embrace the IDs produced under the BSP’s in-house system, with a key issue being the lack of digital signatures on the cards.

This lack of authentication has made the IDs less reliable for banking transactions, prompting calls for stricter standards and better verification features in future ID iterations.

Article Topics

AllCard  |  biometrics  |  digital identity  |  government purchasing  |  identity document  |  national ID  |  Philippines