After pointing a finger at ALLCard for the delayed printing and substandard quality of the National ID, which was printed right inside the Minting and Printing Plant of the Bangko Sentral ng Pilipinas (BSP) in Quezon City, the BSP is now blaming OVD Kinegram, the preselected supplier of the key raw material for the National ID Program, as the source of delays in printing for the Philippine Statistics Authority (PSA).
Citing court documents, Bilyonaryo.com said OVD Kinegram allegedly provided defective materials to ALLCard, which led to the holdup in national ID printing.
The BSP contends that the core issue lies with ALLCard’s failure to deliver the supplies as stipulated in their contract, asserting that the raised concerns merely distract from this fact, the report added.
The BSP faces scrutiny for its handling of the project, particularly regarding the legality of subcontracting in agency-to-agency procurement, referring to its now-terminated agreement with ALLCard as a “lease-supply agreement.”
Concerns have also emerged about how OVD Kinegram was selected as the supplier.
Ricardo Fulgencio IV filed a complaint against former BSP Governor Benjamin Diokno and six other officials with the Ombudsman on January 20, 2021.
He alleged they violated the Government Procurement Reform Act by circumventing the bidding process for OVD Kinegram.
Fulgencio has since passed away.
In a statement to Bilyonaryo.com, the BSP clarified that it did not force ALLCard to utilize OVD Kinegram’s services.
“ALLCard voluntarily participated in the bidding process, won the contract, and accepted the award with full knowledge of the requirements,” the BSP said.
The PhilSys Act mandates that security features of the PhilID card adhere to international standards.
The BSP and PSA agreed to implement OVD Kinegram’s proprietary diffractive optically variable imaging device (DOVID) technology as part of the national ID’s security measures.
Bilyonaryo.com attempted to reach OVD Kinegram for comment on its defective deliveries to ALLCard and its selection by the BSP without a competitive bidding process, but received no response.
In 2023, ALLCard sought legal recourse after being disqualified by the Department of Transportation (DOTr) from printing driver’s licenses, despite submitting a lower bid of P176.85 million. Bannercard was awarded the contract with a bid of P219.24 million.
Following the bid opening, the DOTr contacted the BSP, Land Bank of the Philippines, and the Social Security System to inquire about ongoing projects with the two bidders and any delays.
The BSP informed the DOTr that ALLCard had incurred delivery delays amounting to at least 10 percent of the contract price. Although ALLCard faced delays in contracts with the SSS and LandBank, these did not exceed 10% and were not considered unsatisfactory.
Court records also showed that the BSP sent a follow-up letter to the DOTr stating that as of June 2, 2023, ALLCard’s delivery delays had reached 45 percent, and it was charging the company liquidated damages for the delay.
ALLCard ultimately lost its case against Bannercard at the Court of Appeals due to its failure to file a timely protest with the DOTr’s bid and awards committee.
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