It is the first civilian ID application in the country to use biometrics, the technology involving the automatic identification of a person based on his/her physiological or behavioral characteristics. The ID issued by the Social Security System, the state-run pension fund for private sector employees, has the member's fingerprint, signature and photograph--all digitally captured to prevent fraud. But preventing fraud appeared to be the only laudable thing about the project, as far as the Commission on Audit is concerned. A value-for-money audit conducted on the project by COA showed that the money spent for the project--around P1.8 billion--may not have been spent wisely. "To conclude, the audit has showed that the desired results, which are measured against the objectives of the project, were not fully attained considering that Management has invested a total of US$31,453,556.58 or P1,351,285,230.86 as of 2004 with minimum efficiency and economic results. "Likewise, the expectations of the members and beneficiaries on the quality of services the ID card could offer were not completely satisfied," read a portion of COA’s 2005 annual report for the SSS. The biometrics ID is a big leap from the cardboard SSS handed out to members for years. The old ID was not for identification but, as indicated at the back, was "strictly for social security purpose." The card contained the member's name, signature and social security number. The SSS began issuing the biometric IDs in 1998, the same year the Supreme Court declared unconstitutional then President Fidel Ramos's Administrative Order 308, which proposed a biometrics-based identification system--a controversial proposal which was later tagged as a national ID system. While Malacañang is still looking for ways to get around the Supreme Court ruling, SSS processed more than 9 million IDs to its active members and retirees as of September this year. SSS president and chief executive officer Corazon de la Paz said the new ID saved the agency P6.5 million in fraudulent claims with the cancellation of the pensions of 17 members. Some 6,000 more cases are currently under investigation. These could bring in as much as P1.1 billion in savings, de la Paz said. Ayala Systems Technology Inc. (Asti) won the $37.8-million contract for the SSS ID Card System Project in 1998. The agreement requires Asti to supply, install and maintain the ID card system and deliver related products and services in six years. By the end of 2004, SSS spent P1.35 billion or 83 percent of the project’s approved budget.
Still, only 7.21 million cards were processed, less than 21 percent of the targeted 35 million cards.
SSS Assistant Vice President for Media Affairs Palacios explained the project's schedule of expenses, noting that the bulk of the expenses-–the hardware and software--is at the beginning of the project. Once the equipment is set up, the agency would only need to spend for consumables such as paper and printing. While agreeing that projects involving acquisition of equipment are costly at the start of implementation, UP School of Economics' Dr. Renato Reside said the number of IDs produced is an indication that the envisioned outcome is not yet achieved. "The goal is to broaden the scope of the beneficiaries of the SSS who have access to its services. Given that only a small number of IDs were processed at this time, maybe that's falling short," Reside said. COA noted in the same report that processing time of the ID cards slowed down from the target time of 10 days to 42 days or even 81 days when the review was made from April to June 2005. COA said this could be attributed to poor or non-maintenance of the equipment. Palacios said the machines break down sometimes. He added that while producing an ID can easily be done in an hour or two, checking the member's details against the population takes some time. Palacios said the snail-paced mailing system is also a culprit. Given the cost and the effort invested into the project, only 23 percent of the members availed of the ID cards. The report noted that only 7.43 million or 23 percent of the 31.82 million members/beneficiaries projected to apply availed themselves of the ID cards.
“It was only very recently that you cannot transact business with the SSS if you don't have an ID. Only then did it become mandatory," Palacios said. But COA had a different take on why members fail to apply for the cards: The purposes of the ID card were not fully served. The card is only being used as an "additional requirement" in the application and processing of members' claims and benefits. "Other than this, the card has no other use, which defeats the purpose for which the project was initially conceptualized," the report read. Several oversight committees created to assist the project handlers also failed to create business opportunities for the ID card such as tying up with other agencies. Cardholders cannot even inquire into their contributions or loan status through SSS information kiosks installed in strategic locations in Metro Manila. COA said the kiosks were not made available owing to cost-cutting measures undertaken by SSS. Palacios said the kiosks are now in malls and SSS Members Assistance Centers. "We believe that the ID is very important to our operations. The benefit is not only to the SSS but to the members… In the future, it may not be necessary for the members to go to the SSS office anymore. All they have to do is go to a machine in a mall and swipe their ID to transact with the SSS," Palacios said. He said the SSS ID will also play a major part in the planned national ID system. But Reside is not painting a rosy picture. "If because of its inefficiency SSS loses money later on, the benefits of its members may be affected. Contribution rates may increase," he said.
(with Richelle Joyce Figueroa) -GMANews.TV 
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