COA orders BI execs, contractor to pay P626M over anomalous alien ID project

The Commission on Audit INQUIRER FILE PHOTO

The Commission on Audit (COA) has ordered two former Bureau of Immigration (BI) commissioners and the supplier of alien registration cards to pay P626.33 million in lost government revenue arising from the alleged irregular contract amendments in 2007.

In a recently released 14-page decision dated Aug. 8, the COA Proper also required Datatrail Corp. to immediately turn over to the BI the “full legal ownership” of the facility and equipment for the Alien Certificate of Registration Identity Card (ACR I-Card) project. This ownership transfer should come “at no cost.”

Affirming their liability for the alleged irregularities, COA denied the appeals of Datatrail Corp. and former BI Commissioners Roy Almoro and Marcelino Libanan on the June 30, 2014 notice of charge.

The charge consists of the P423.83-million under-remittance of the government share in gross revenues and the P202.5 million in underpayments of annual guaranteed payments.

The liabilities arose from the retroactive amendment to the contract’s terms in 2007, which changed the revenue sharing on the yearly renewal to a 67-33 setup in favor of Datatrail, from the 50-50 scheme originally set in 2003. The 10-year contract was also extended to 21 years.

The amendment of terms in favor of Datatrail was made so the contractor would agree to extend the validity of the $50 microchip-based cards to five years from the original one-year period because of complaints by foreigners residing in the country.

COA rejected Almoro’s argument that he relied on the opinions of the Department of Justice and the National Economic and Development Authority about the legality and validity of the amendments.

It also did not give weight to the commissioners’ argument that only the courts, not the constitutional body, has the power to declare the contract void, inoperative and without legal effect.

COA Commissioners Jose A. Fabia and Isabel D. Agito signed the decision, while COA Chairperson Michael G. Aguinaldo inhibited from the case. JPV