National ID Delays May Get Worse as BSP Cancels Supplier Contract

(SPOT.ph) The Bangko Sentral ng Pilipinas (BSP) has terminated its contract with AllCard Inc. (ACI), the supplier tasked with producing the National IDs under the Philippine Identification System (PhilSys). What happens now to the 36 million Filipinos who haven't received their IDs?

The decision to end the contract comes after ACI failed to meet critical deadlines and deliver necessary materials, which only added to the existing delays in the National ID project. 

BSP Governor Eli Remolona said the Central Bank is now seeking arbitration for damages and actively searching for a new supplier to take over the project. Meanwhile, the ACI has filed a motion for reconsideration, asserting that it has been in “full compliance with all contractual obligations.” 

“The PSA is taking necessary measures for the continuous issuance of National IDs. Further, different formats of the National ID are also available for registered persons, such as the ePhilID, which can be obtained from registration centers, and the recently launched Digital National ID,” PSA said in a statement.

You can also track the delivery status of your National ID via PHLPost.

Also read: Still No National ID? You Can Now Access the Digital Version in Three Steps

What happened to the National ID?

ACI was tasked to provide Filipinos over 116 million National IDs. However, by the end of June 2024, ACI had incurred significant penalties of more than 10% of the contract price due to prolonged machine downtime and significant delays in material delivery, as stated in the BSP Monetary Board (MB) Resolution No. 962.

The BSP MB saw no other option but to cancel the contract.

However, ACI said the contract termination could also lead to approximately 60 million already-produced cards going to waste.

More than 89 million Filipinos are registered for PhilSys, but only 53 million IDs have been delivered as of August 2, 2024. The government initially said the delivery of the National IDs may take up to six months upon registration, but others have been waiting years.

In the meantime, a digital version of our National ID can be accessed right now at the official website or the eGOV mobile application. This version is as good as the real deal, with PSA reiterating that it can be presented as valid proof of identity in transactions. 

Also read: Over 50 Million National IDs Have Been Delivered, PSA Says