NEDA asked to explain PhilSys bidding irregularities


The National Economic Development Authority (NEDA) must explain the alleged bidding irregularities in connection with the P4-billion supply contract for the Philippine Identification System (PhilSys) or the national ID project.

Bagong Henerasyon (BH) party-list Rep. Bernadette Herrera reiterated her apprehension over winning bidder Madras Security Printers Private Ltd. (MSP).

“I’m worried about the company that won the contract, which has a reputation for corruption and is banned in a lot of countries,” she said. MSP, an India-based printing technology company, was the lone bidder deemed qualified for the project.

During a budget hearing conducted by the House Committee on Appropriations last Sept. 4, Herrera sought an explanation from NEDA on why the Bids and Awards Committee for the PhilSys project suddenly imposed a questionable additional provision, which essentially left only one complying bidder.

“Why did we change in the middle of the game the terms of reference from 100 percent cloud implementation to a hybrid approach of on-premise and cloud implementation which, according to the Philippine Computer Society (PCS) Foundation, is very risky and a first of its kind?” asked Herrera, a Deputy Majority Leader.

“I’m scared because we are talking here about our national ID system, and I’d like to get an explanation to that because I want to make sure we are secured in this bidding of the national ID project,” she added.

Acting NEDA chief Secretary Carl Chua said he would request the Philippine Statistics Authority (PSA), which is in charge of the national ID project, to submit a detailed answer to Herrera’s questions. However, he assured the solon that the project “underwent competitive bidding.”

The PCS Foundation had earlier expressed concern over the use of a hybrid cloud system architecture for the Modular Open Source Identity Platform (MOSIP), the technology to be used for the national ID system.

In its July 30, 2020 letter to the PSA, the PCS Foundation indicated that based on its research and understanding of MOSIP, the platform would work at an optimum when the app, Web, and database servers are all hosted in the cloud.

“The hybrid approach would be the first implementation of its kind and this is very risky undertaking by the PSA. As you can see in the logical data infrastructure of MOSIP, the transfer of data within the system will be greatly affected if the database server will be on-premise," the foundation warned.

NEDA chairs the PhilSys Policy and Coordinating Council.