BSP ends deal with national ID supplier

The Bangko Sentral ng Pilipinas (BSP) terminated its contract with All Card Inc. (ACI), the supplier of PhilSys ID cards, after the latter failed to perform some obligations.

A sample image of the Philippine Identification card (Photo from PhilSys Imus)

Do we have to wait longer for our national ID cards?

Based on Monetary Board Resolution No. 962, ACI was supposed to honor the following commitments:

• Provision of technical and maintenance support personnel
• Training of BSP and Philippine Statistics Authority personnel
• Supply and delivery of raw materials, consumables, and wear-and-tear spare parts for 116 million pieces of PhilID cards

However, the central bank noted in the resolution the company’s lack of compliance in, especially in delivering enough raw materials within a specific period and maintaining the production machinery.

The BSP also said that ACI fell short of providing a “comprehensive and realistic catch-up plan.” It also stressed that the firm “effectively abandoned the contract.”

As of June 30, the cumulative liquidated damages due from ACI have reached more than ten percent of the contract price. 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 document signed by BSP Monetary Board Secretary Clifton Abot said.

BSP chief Eli Remolona Jr. earlier floated this move, describing the scenario as "a real problem."

We are negotiating for damages and at the same time, we’re looking for a new vendor for this contract. But this is an issue and we’re working on that issue, Remolona said.

Source: Inquirer