Lacson calls for sanctions in failed Nat'l ID card deal

Former Senator Panfilo Lacson on Friday called for sanctions against the supplier of cards and euipment for National ID cards for its failure to deliver in its deal with the Bangko Sentral ng Pilipinas (BSP). 

"It should not end with a simple termination. Following proper legal procedures, sanctions with commensurate damages must be imposed," Lacson said in a statement.

"Failure to fully implement the Philippine Identification System Act (Republic Act 11055) six years after its passage is unacceptable," he added.

Lacson was the principal author and sponsor of the law in the Senate during the 17th Congress.

Reacting to Lacson's statement, AllCard Inc. (ACI) president Roy Ebora maintained that they have "judiciously tried our best to implement the National ID project even with all the challenges we faced both internal and external."

"We have submitted a Motion for Reconsideration with the Monetary Board and we also have an ongoing Arbitration case with the BSP, which we have full respect and faith with its proceedings," he said.

In a Notice of Decision to Terminate Contract obtained by GMA News Online, the BSP informed AllCard Inc. (ACI) of the Monetary Board’s decision, dated August 15, to terminate in whole the contract between the two parties for the “supply, delivery, installation, and commission of Lotus 1 Lot Lease of Card Production Equipment for a period of three years, including provisions of Technical and Maintenance Support personnel, training of BSP/PSA personnel, and supply and delivery of raw materials, consumable,s and wear-and-tear spare parts for 116 million pieces of PhilID cards.”

The central bank cited the following as grounds for terminating its contract with ACI:

• Failure 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
• Failure to perform other obligations under the contract

Senate Minority Leader Aquilino "Koko" Pimentel will seek an investigation into the matter, noting that it will bring further delay in the delivery of national IDs.  —VAL, GMA Integrated News