BSP denies subcontract allegations with national ID card supplier

GOV’T INITIATIVE The Bangko Sentral ng Pilipinas wants to further boost the use of quick response code-enabled payment and financial service in “strategic” sectors, including transportation. — INQUIRER FILE PHOTO

MANILA, Philippines — The Banko Sentral ng Pilipinas (BSP) has denied allegations that it entered into a subcontract with AllCard, Inc., the terminated national ID card supplier.

“The BSP did not subcontract its obligations to AllCard, Inc. (ACI). BSP and PSA (Philippine Statistics Authority) personnel managed the operations, while ACI provided equipment, raw materials, and technical support under a lease and supply contract,” BSP’s statement on Thursday read.

The BSP released the statement after the PSA said on Thursday that the matter was deferred to the Commission on Audit (COA).

“The Philippine Statistics Authority wishes to clarify that the inquiry during the Senate budget hearing yesterday (Wednesday) on whether there were violations in the contract between the agency and Bangko Sentral ng Pilipinas was respectfully and duly deferred to the representative of the Commission on Audit,” the PSA said.

READ: BSP’s subcontract violation, cancellation of national ID deal raised in Senate

In the Senate hearing on the proposed 2025 budget of the National Economic Development Authority and its attached agencies, National Statistician and Civil Registrar General Claire Dennis Mapa said they would pay the BSP to print the national ID cards as stated under their memorandum of agreement (MOA).

However, Maps disclosed that they found out that the BSP subcontracted AllCard to print the cards.

“As mentioned, we were surprised na All Cards ang kumuha. Nalaman na namin no’ng nagkaroon ng operations,” he said.

(As mentioned, we were surprised that All Cards got it. We only found out when the operations started.)

Mapa also pointed out that subcontracting is prohibited under the MOA.

Senator Grace Poe then raised the possibility that the BSP could have committed violations, saying it was a “grave concern.”

When the COA was asked to explain, state auditor Anicleto Boleche Jr. said subcontracting is not allowed under the Bids and Awards Committee resolution, which was attached to the MOA.

However, the PSA in its statement said that it “echoes BSP’s official statement that it has fully complied with Agency-to-Agency Procurement Guidelines under Republic Act No. 9184 regarding the printing of the National IDs.”

The central bank also said, “The COA, which reviewed the transactions of BSP, did not include any findings related to subcontracting in its BSP Annual Review report.”

READ: BSP seeks P641-M reparation from fired national ID supplier

The BSP terminated its contract with AllCard after it failed to deliver obligations under the deal, causing delays in production and delivery of the cards.