Group hits COA for voiding BI’s ACR card deal

MANILA, Philippines - The Commission on Audit (COA) does not have the authority to void a public-private partnership of the Bureau of Immigration (BI) for the production of alien certificate of registration identification cards (ACR I-Cards), a consumer group said Monday.

The Action for Consumerism and Transparency in Nation Building (Action) said COA was treading on dangerous ground by canceling Build-Operate-Transfer (BOT) contracts funded by private funds.

“While COA is the guardian of public funds, it has no vested authority to cancel a BOT contract that is 100-percent funded by private funds,” Action spokesman Jake Silo said.

“Its call on the BI to take over the facilities, fixtures and equipment for the ACR I-Cards by unceremoniously voiding the contract with Datatrail Corp. sends a cowering chill to all investors.”

An ACR I-Card is issued to a foreigner staying in the Philippines for more than 59 days. It is a microchip-based identification card with biometric security features produced by Datatrail Corp. under a BOT contract validated by the Department of Justice (DOJ), the PPP Center, and the National Economic and Development Authority (NEDA).

“The BOT law entirely vests the authority to pass upon all aspects of a BOT contract, including legalities and compliance with approval processes upon the NEDA ICC,” Silo said, referring to the Investment Coordination Committee.

Silo said a BOT contract can only be terminated once both parties comply with the arbitration provision.

“This COA decision will have to be enforced through courts of law and the government will not only suffer huge financial losses, but legal defeat, embarrassment and irreparable loss of credibility in the business community,” he said.

Five NEDA resolutions and four DOJ opinions upheld the validity of the ACR I-Card contract and its subsequent extension to 2024, according to Silo.

The COA recently ordered the contract voided, saying the initial 10-year agreement should have lapsed in 2013 and the extension granted is grossly disadvantageous to the government and not approved by NEDA.