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Court issues TRO on BSP’s contract termination with national ID printer

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Lady Vicencio

ABS-CBN News

MANILA (UPDATE) - The Quezon City Regional Trial Court Branch 76 issued a temporary restraining order and preliminary injunction halting the Bangko Sentral ng Pilipinas’ (BSP) termination of its contract with national ID printer AllCard Inc (ACI).In a seven-page ruling issued on September 9, 2024, the court recognized the “critical and sensitive nature of the case,” emphasizing it involves matters of national interest given the importance of the national ID program.It granted ACI’s petition, highlighting the need for an expedited resolution of the contractual dispute which is not feasible through the Arbitral Tribunal.’The court called out the BSP’s alleged lack of transparency as it allegedly failed to disclose information regarding the termination and prohibited to impose penalties on ACI.The contract termination was also described as premature with the decision coming out on August 15 or one day after the case’s summary hearing.“Said delays in the delivery of the said cards amounted to at least P129,646,464.29 in the form of Liquidated Damages. Given the substantial amount, the right of Petitioner to be fully informed of the basis of such damage and the opportunity to explain are imperative,” the ruling stated.“The Court observes an alarming lack of transparency from the Respondent. The failure to fully disclose the reasons for the Petitioner’s alleged liability for delays or unsatisfactory performance casts doubt on the legitimacy of the termination decision. This lack of disclosure raises concerns about the fairness of the Respondent’s actions and the adequacy of the information provided to justify the termination,” the ruling stated.With ACI being the bidder with the lowest calculated bid, the court emphasized the company’s right as the contracting party for procedural and substantive due process.The TRO aims to preserve the status quo as the court reviews the legitimacy of the contract termination and prevents further actions by the BSP while the case is under review.ACI declined to comment on the ruling but expressed intentions to cooperate to investigations on the matter.“AllCard will cooperate and is open to any investigation that may be initiated by the Senate or any government authorities concerned,” ACI President Roy Ebora said in a statement.The BSP said it would respond after studying the court order, a copy of which it has yet to receive. <div> </div><div>SENATE PROBE ON PHILSYS EYED</div><div> </div>Senate Minority Leader Aquilino Pimentel III wants the Senate to investigate the implementation of the National ID law to address the backlog in ID cards.Pimentel said the termination of the BSP&#x27;s contract with AllCard Inc. has resulted in a need for a new vendor and has raised concerns regarding the continuity and efficiency of the implementation of the National ID law.He noted that as of August 2, 2024, the Philippine Statistics Authority (PSA) has recorded over 89 million registrations and delivered approximately 53 million physical PhillD cards.&quot;What are the underlying root causes of the delays and inefficiencies in the implementation of RA No. 11055 or the Philippine Identification System Act?,&quot; Pimentel said in his resolution, &quot;What steps should the PSA and BSP take to establish and implement a detailed catch-up plan to address the current backlog of PhillD card production and distribution?&quot;<div>- With a report from RG Cruz, ABS-CBN News</div>

A Quezon City court issued a temporary restraining order halting the Bangko Sentral ng Pilipinas’ termination of its contract with national ID printer AllCard Inc (ACI).

A Quezon City court issued a temporary restraining order halting the Bangko Sentral ng Pilipinas’ termination of its contract with national ID printer AllCard Inc (ACI).