Justice Secretary Jesus Crispin "Boying" Remulla has advised Bangko Sentral ng Pilipinas Governor Felipe Medalla that the proposed amendments to the agency's memorandum of agreement over the personalization of the Philippine Identification or PhilID cards are "legally infirm."

The MoA of the BSP over PhilID cards is with the Philippine Statistics Authority under a contract with AllCard Inc. Remulla's five-page legal opinion was handed to the BSP early this month, but was only made public recently.

The Justice chief did not give weight to the position of BSP that the proposed amendment is not substantial or material, thus, may be allowed under the implementing rules and regulations of Republic Act 9184, or The Contract Implementation Guidelines for the Procurement of Goods, Supplies and Materials.

"We are of the opinion that the proposed actions are legally infirm," the DoJ said as it noted that RA 9184 provides that an amendment to an order may be issued only in "emergency cases or during fortuitous events."

"In the case at hand, it may be inferred that the proposed changes in technical specifications and terms of reference are to ensure that the set at 50 million PhilIDs issued at the end of 2022 is achieved," it explained.

Fortuitous events

"However, it must be stressed that except in emergency cases of fortuitous events, and in cases where necessary for the protection of the goods, it is our opinion that the provision of the guidelines pertinent to an amendment to an order is not applicable as there is no emergency of fortuitous event existing that would warrant the changes," it added.

The DoJ said the BSP may opt to utilize item XIV (Reservation Clause) of the TOR which states: "BSP reserves the right to require the contractor to provide additional equipment, at no additional cost to BSP, in case target card personalization per day needs to be increased."

It said applying the said provision would not require amendment or modification in the contract.

To recall, on 10 June 2022, the PSA and BSP entered into a memorandum for the production of 116 million pieces of cards for the period of four years to be used for the PhilIDs; and the provision, management and maintenance of the personalization equipment which will interface with the PSA System.

For its part, the PSA will manage the PhilSys database and ensure the availability, confidentiality, integrity, accuracy, and readiness of the data that would be personalized in the BSP-produced and pre-personalized cards.

The timeline for the production and delivery of the cards is from 2021 to 2023, with a total budget of P3.48 billion.

NEDA recommendation

BSP sought the DoJ's position, particularly on whether the modification of the agreement's technical specifications to indicate monochrome personalization and the amendment of the terms of reference of the card personalization contract with AllCard may be legally undertaken.

The clarification sought by the BSP stemmed from the recommendation of the National Economic Development Authority to shift from the current digital colored printing (using drop-on-demand or DoD technology) to monochrome laser engraving of the PhilIDs front-facing photograph.

The shift was purportedly intended to enhance photo quality and to replace the DoD printers with laser engraving printers to increase the capacity of card personalization.
The recommendations were issued by NEDA in a bid to achieve the government target of 50 million PhilIDs issued by the end of 2022.

Replacement

In line with NEDA's recommendation, the PhilSys Policy and Coordination Council issued a resolution approving the recommendation to shift from digital colored printing to monochrome laser engraving for the PhilID card, said to be at no additional cost to the government.

The signing of the amended technical specifications indicating monochrome printing, which shall form part of the MoA was also approved.

The BSP was allowed to amend its contract with AllCard for the replacement of the DoD machines with laser engraving machines and start the full implementation no later than 1 October 2022.

In light of PSPCC's resolution, the BSP sought the DoJ's legal opinion on the said recommendations.