The Bangko Sentral ng Pilipinas (BSP) said over the weekend it terminated its National ID contract with AllCard over the delays on the part of the company.
“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,” it said.
“Terminating the contract allows the PSA the freedom to explore other options to expedite the production and delivery of national ID cards. Attempts to revive the contract with a supplier that has already failed to deliver will only further delay PSA’s plans to address backlogs,” the BSP said.
The BSP said it had not received an official copy of the reported order from the Regional Trial Court of Quezon City.
AllCard sent a copy of the alleged order on Sept. 18, 2024. The BSP said it would act accordingly once the official order was received.
The BSP said it undertook the printing of the cards to assist the PSA with its mandate under Republic Act No. 11055.
The BSP said it properly conducted a public bidding process for a lease and supply contract, which AllCard won and accepted.
It said that as supported by the PSA on Sept. 12, 2024, it fully complied with agency-to-agency procurement guidelines under Republic Act No. 9184.
“In strict compliance with these guidelines, BSP and PSA conducted the printing and personalization of the cards, and did not subcontract any operations related to the printing of the national IDs to AllCard,” it said.
The BSP said AllCard’s role was limited to providing equipment, raw materials and technical support. The 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.
AllCard initiated arbitration proceedings, in which the BSP is actively participating. “The 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,” the BSP said.
