Probe sought on canceled ID supply contract

MANILA, Philippines —The Senate should investigate the cancellation by the Monetary Board of the contract between the Bangko Sentral ng Pilipinas (BSP) and the private supplier for the printing of 116 million national ID cards, Minority Leader Aquilino Pimentel III said yesterday.

“It seems that there will be a further delay in the printing and delivery of the national IDs. The Senate should investigate that,” Pimentel said in reaction to the MB’s cancellation of the contract between the BSP and AllCard Inc. (ACI).

AllCard won the bidding in 2020 for the contact to print 116 million national ID cards, two years after the signing into law of Republic Act 11055 or the Philippine Identification System Act.

Former senator Panfilo Lacson said sanctions should be imposed on parties or individuals responsible for undermining the implementation of RA 11055.

“It should not end with a simple termination. Following proper legal procedures, sanctions with commensurate damages must be imposed,” Lacson said in a post on pinglacson.net.

“Failure to fully implement Republic Act 11055 or Philippine Identification System Act, six years after its passage is unacceptable,” he said.

In a ruling dated Aug. 15, the MB, the highest policymaking body of the BSP, voided the three-year agreement for the supply, delivery, installation and commissioning of card production equipment for 116 million pieces of national IDs.

In a letter, Elmore Capule, BSP senior assistant governor and general counsel, informed AllCard “that a Decision dated 15 August 2024 was rendered by the Monetary Board, terminating in whole the contract” with the  BSP “for the supply, delivery, installation and commissioning… of card production equipment for a period of three years, including… supply and delivery of raw materials… wear-and-tear spare parts for 116 million pieces PhilID cards.”

AllCard has maintained there was no breach of contract and that it has properly fulfilled its obligations based on BSP’s technical specifications and terms of reference.