Lawmakers seek investigation of defective e-passports

MANILA, Philippines - Administration lawmakers are calling for a congressional inquiry into reports that many electronic passports issued by the Department of Foreign Affairs (DFA) were defective and could have implications on national security.

Agham party-list Rep. Angelo Palmones said international criminal syndicates and terrorist groups could use the defective passports to go in and out of the country.

Other lawmakers noted the electronic passports jointly manufactured by the Bangko Sentral ng Pilipinas (BSP) and Oberthur Technologies are defective and could be easily damaged.

The DFA launched the e-passport project in August 2009 as part of the P900-million contract awarded to private contractor Oberthur.

DFA officials assured the public that steps are being taken to address the reported defects, which are “random and isolated.”

Alagad party-list Rep. Rodante Marcoleta said even if the incidents of defective e-passports were isolated, there should be an investigation on the issue.

“If you will consider the money paid for the passport document even though the BSP has the capacity to print the passports like our money, then we must investigate who are responsible for the manufacture of substandard passports,” Marcoleta said.

Bayan Muna party-list Rep. Neri Colmenares said Congress should investigate the defective passports, citing reports of irregularities in the processing.

He said that up to now, the issue with the company that printed the “Arrovo” P100 bills has not been resolved.

Valenzuela City Rep. Magtanggol Gunigundo said DFA officials should explain the matter in the coming budget deliberations.

He said the Bureau of Immigration should also review the process of recording the departure and arrival of international passengers.

“Because of this e-passport, many visitors from Asia and Europe are not required anymore to fill up embarkation and disembarkation cards. All they have to do is swipe the e-passport to a computer and there is no hassle. But in the Philippines, why is it that we are still required to fill up the forms even though we have this e-passport,” Gunigundo said.

‘Minimum standards met’

Meanwhile, Oberthur Technologies denied that it failed to meet the minimum standard for cloth-paper material and gold-ink printing and alleged failure to meet passport supply requirements.

The firm said it is not aware of any anomaly in the production of passport booklets as their supply to the government, particularly of e-covers for passport booklets, is covered by a valid contract, which resulted from a legitimate bidding process in 2008.

The DFA tasks the BSP as its security printer of passports.

In turn the BSP subcontracted Oberthur Technologies SA of Europe to supply and attach the electronic cover. Embedded in the e-cover is a microchip containing the holder’s vital information.

While Oberthur Technologies supplies e-covers to BSP under contract, the company’s country head Hernani Lim said Oberthur does not undertake the “attachment” of e-covers to passport booklets.

This is a function of passport production not covered by the contract.

The BSP Bids and Awards Committee last April 23 reportedly sent Oberthur a notice of post-disqualification for its continued failure to submit acceptable samples.

“But to clarify, Oberthur Technologies did receive a notice regarding BSP concerns over a sample submitted, but not a notice of post-disqualification. Moreover, Oberthur is not aware of any memorandum directing the immediate consideration of another bidder for post-evaluation. If this was the case, we believe BSP would have duly informed the bidders, including us.”

The company denied the DFA has been complaining of a shortage of 300,000 e-passports as of April-May.

A BSP internal memo in April reportedly indicated that Oberthur has had a production backlog since December 2011.

“As a supplier to BSP of e-covers for passport booklets, we are not aware of any shortage. We have not been informed of any shortage as well. We deliver based on order, and to date, we have complied with all our delivery commitments to BSP,” Lim said.

He added that Oberthur completed the delivery of e-covers in April, as per contract.

The alleged shortage of e-passport booklets, he said, was the subject of a congressional inquiry in late 2011, and records will bear that Oberthur was deemed not responsible for any shortage, he said.

The company clarified that it supplies only e-covers for passport booklets, not passport booklets themselves.

As the present supplier of e-covers, Lim confirmed that Oberthur was tasked to supply additional units beyond what was originally contracted.

“This is a small-quantity order, requiring quick delivery. And while such a situation actually results in higher production costs, the contract is going to be fulfilled at a price even lower than $5.72,” he said.

Lim said the company is not aware of any official opposition to Oberthur Technologies and its alleged failure to meet passport supply requirements.

“Oberthur has complied with all its delivery commitments to BSP with respect to the needed e-covers,” he said. – With Pia Lee-Brago