Think tank urges probe on BSP termination of National ID cards deal

A local think tank has called for a probe on the termination of contract between the Bangko Sentral ng Pilipinas (BSP) and AllCard Inc., the supplier for the Philippine Identification System (PhilSys) or the government's National ID project.

Lawyer Nicasio Conti, CEO of Capstone-Intel Corp., said the BSP's decision to end its agreement with AllCard Inc. due to significant delays and non-compliance with project requirements has highlighted the urgent need for scrutiny.

"The delays and failures related to this contract may suggest issues beyond mere administrative inefficiency. I have personally experienced the impact of these delays, having only received a digital copy of my National ID while waiting for the printed version. This is unacceptable for a project of such national importance," Conti said in a press statement.

Conti said that contracts, especially those that have impact to millions of Filipinos, "must be awarded and managed with stringent oversight to prevent any form of misconduct."

"This incident should prompt all government agencies to strengthen their safeguards and accountability measures," said Conti, who previously served as spokesman of the Department of Transportation (DOTr).

In a notice of decision to terminate contract, a copy of which was obtained by GMA News Online, the BSP informed AllCard Inc. (ACI) of the Monetary Board's decision 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 (Philippine Statistics Authority) personnel, and supply and delivery of raw materials, consumables, and wear-and-tear spare parts for 116 million pieces of PhilID cards."

The notice also indicated that, as of June 30, 2024, the cumulative liquidated damages due from ACI have reached more than 10% of the contract price.

With this, the BSP said: "The contract is hereby deemed terminated from receipt by ACI of the notice decision. No other paper or document shall be entertained by the Monetary Board."

The ACI has submitted a motion for reconsideration addressed to BSP's Monetary Board, appealing the termination of its contract with the central bank. The company maintained that it has complied with its obligations.

Senate Minority Leader Aquilino "Koko" Pimentel III earlier said he was drafting a resolution asking the Senate to investigate the contract termination, noting that the decision would result in further delays in the delivery of national IDs.

Bukidnon Representative Jonathan Keith Flores, who also serves as chairperson of the House Committee on Government Reorganization, is also pushing for an investigation.

Flores said that failed contracts could erode the government's credibility, including the agencies concerned.

"The PSA director general should immediately resign his post for this PhilSys ID fiasco. He must go back to the academe where he will have the time to lick his wounds and undergo a serious reality check,'' Flores said in a press release. 

''The BSP Monetary Board must immediately dismiss the BSP bidding committee officials who failed the Filipino people on this failed contract. We will accept nothing less,'' he added. 

Capstone-Intel is a group that seeks to be the country's leading private intelligence agency providing high-impact research and actionable intelligence to help businesses, governments, and investors solve problems, as well as grow constituencies and markets. — VDV/VBL, GMA Integrated News