BSP sees further delay in nat'l ID rollout if old deal continues

MANILA – The Bangko Sentral ng Pilipinas (BSP) on Saturday maintained that the decision to terminate the contract with AllCard Incorporated (ACI) for the production of blank national identification cards (IDs) was "justified due to delays on [ACI's] part."

In a statement, the BSP said continuing the deal with ACI would cause further delays in the rollout of the national IDs.

Attempts to revive the contract with a supplier that failed to deliver on its commitment will only worsen backlogs, added the BSP.

The Quezon City Regional Trial Court Branch 76, in its Sept. 9 order, granted ACI's petition to halt the BSP's termination of contract due to alleged lack of due process and transparency.

"This decision was made to protect the interests of the government, represented by the Philippine Statistics Authority (PSA), the primary implementing agency of the Philippine Identification System (PhilSys) project," the BSP said.

"Terminating the contract allows the PSA the freedom to explore other options to expedite the production and delivery of national ID cards."

The BSP has yet to receive an official copy of the temporary restraining order, although the ACI sent them a copy on Sept. 18.

"BSP will act accordingly once the official order, if any, is received," it said.

The central bank explained that it had undertaken the printing of the cards to assist the PSA with its mandate under Republic Act 11055 or the Philippine Identification System Act.

BSP said it conducted a proper public bidding process for a lease and supply contract, which ACI won and accepted.

It also cited its strict compliance with procurement guidelines, adding that BSP and PSA conducted the printing and personalization of the national IDs and did not subcontract any operations related to the printing of the national IDs to ACI.

"AllCard's role was limited to providing equipment, raw materials and technical support. BSP's procurement of these resources from AllCard was duly reported to the PhilSys Council, chaired by the National Economic and Development Authority and co-chaired by the PSA," BSP said.

"Other issues being raised distract from these basic facts. AllCard has initiated arbitration proceedings, in which BSP is actively participating. This arbitration is the appropriate forum to resolve the issues and the proceedings at the Philippine Dispute Resolution Center are confidential in accordance with its rules," it added. (PNA)