COA to Immigration: Terminate lapsed, ‘disadvantageous’ ID card deal

The Bureau of Immigration should terminate its contract with a private firm it engaged to make ID cards for non-immigrant foreigners in the country because he deal has already lapsed and the firm still owes the government more than P600 million, the Commission on Audit said.

 

In its recently released audit report, the COA said the BI’s build-operate-transfer (BOT) contract with the J. Serrano Trading Corporation, now known as Datatrail Corporation, should have already been terminated after the 10-year agreement lapsed.

Because of this, the COA said "all the rights, title and interest in and to the facilities, fixtures, and equipment should be transferred to the BI".

 

Inked in December 2003, the 10-year contract was for the automation of the Alien Certificate of Registration Identity Cards that the bureau issues to foreigners with tourist visas.

The cards are proof that they are not overstaying in the country.

 

The deal was supposed to replace the paper-based ACR cards with the high-tech and micro-based ACR I-Card in line with the bureau's advocacy of a fraud-proof and accurate monitoring of foreigners staying in the county.

 

The project was approved by the National Economic and Development Authority (NEDA) on a "no objection basis" on the condition of a 50 percent-50 percent annual revenue sharing and with an annual guaranteed payment of P30 million from Datatrail.

 

The COA, however, noted in its report that on March 29, 2007, the annual revenue-sharing provision of the contract was amended to 67 percent-33 percent in favor of Datatrail.

The COA said both parties also agreed to extend the contract to 21 years.

 

The COA said these amendments in the contract were disadvantageous to the government and must be considered "legally void" as it did not have approval from NEDA.

 

“The amendment to the BOT having been void, inoperative and without legal effect, the provision of the original BOT Agreement executed by BI and J Serrano Trading Corporation (now Datatrail Corporation) on December 18, 2003, as approved by the NEDA Board, shall be enforced. Thus, the 50-50% revenue sharing and the contract duration of 10 years shall be observed,” the COA report said.

 

“For effecting the amendment without the needed approval, the signatories thereto are answerable to the government to the extent of loss in revenue on account of such void amendment,” it added.

 

Based on COA's computation, Datatrail, with the unlawful implementation of the amendments in the contract, still owes the BI P423,829,871.51 in revenue shares. The COA also noted that Datatrail has yet to pay P202,500,000 in Annual Guaranteed Payment.

 

The COA said the total payment deficits of Datatrail amounts to P626,329,871.51, not including the amount of interest that should also be levied by the bureau for the firm's late payments.

 

“Due to the default of Datatrail in the remittance of annual guaranteed payment and BI’s share in gross revenue, (the BI should) consider the termination of the BOT agreement,” the COA report reads. — JDS, GMA News