Senate probe eyed on terminated deal with national ID supplier

National ID (FILE PHOTO)

MANILA, Philippines — Senate Minority Leader Aquilino “Koko” Pimentel III is gearing up for  a congressional inquiry into the termination of the government’s contract with the supplier of the national ID cards.

Pimentel said he himself would initiate the probe in the upper chamber.

“Mukhang magkakaroon na naman ng further delay sa making and delivery of the national IDs,” the senator said in a statement to reporters.

(It seems that there will be further delay in the making  and delivery of the national IDs)

“Dapat imbestigahan yan ng Senado (The Senate must investigate this),” he added.

Pimentel was reacting to the Bangko Sentral ng Pilipinas’ (BSP) decision, through its policy-making Monetary Board (MB), to end its contract with AllCard Inc. (ACI).

According to its termination notice dated Aug. 15, MB said ACI failed to deliver its obligations under the deal.

In particular, the Board cited the company’s “failure to deliver any or all of the goods specified in the contract, amounting to more than 10 percent of the contract price.”

The MB also enumerated other obligations that the company supposedly failed to perform:

• ACI failed/refused to comply with valid instructions
• ACI failed to timely provide a comprehensive and realistic catch-up plan.
• ACI effectively abandoned the Contract
• ACI Incurred almost seven percent  (7 percent) wastage, which grossly exceeded the one percent (1%)maximum allowable maximum wastage

The supplier’s explanation on the issues raised against it was also provided in the termination notice.

On the first ground  of termination, which is the “failure to deliver any or all of the goods specified in the contract, amounting to more than 10 percent of the contract price,” ACI argued that the BSP’s  imposition of cumulative liquidated damages (LD) “finds no basis in fact and in law.”

“The Contract and the Terms of Reference are allegedly silent as to the application of cumulative liquidated damages and 2016 IRR (implementing rules and regulations) of RÂ No. 9184 does not speak of cumulative damages, but only refers to the total sum of LD,” according to the supplier as quoted by the MB.

RÂ No. 9184 is the Government Procurement Law.

Meanwhile, on its supposed failure to perform other obligations under the contract, ACI claimed it “may not be held liable to answer for hidden defects or other raw materials outside the contemplation of the contract, or the performance of obligations of other suppliers, or contractors, such as Kinegram.”

But the BSP’s Board was not satisfied with the explanation, saying the supplier “failed to refute” the existence of the  grounds raised against it.

“Accordingly, it failed to show cause why the contract should not be terminated under the circumstances,” it further said.

Signed into law in 2018,  the Philippine Identification System Act was seen to cut down bureaucratic red tape, avert fraudulent transactions and reduce corruption.