THE Department of Foreign Affairs on Monday refused to disclose the 10-year contract with APO Production Unit due to its “confidentiality clause,” following allegations of overpriced passport fee.
DFA spokesman Charles Jose also maintained that as far as the agency was concerned, there was nothing irregular with its contract with APO, the group that bagged the multi-billion printing contract of electronic passport in 2015.
“There’s a confidentiality clause in the contract that prevents us from disclosing its contents,” Jose explained Monday.
“As far as we’re concerned, there’s nothing irregular with our contract with APO; everything is above board,” he maintained.
He added the DFA’s contract with APO went through a thorough review by inter-agency group under the Department of Finance and other concerned agencies.
Jose’s reaction was asked following reports from the Philippine Association of Free Labor Unions, urging Congress to look into the government’s e-passport project with a view to cutting down its cost and make it more affordable for the working class, particularly the overseas Filipino workers.
PAFLU president Terry Tuazon said the e-passports being issued by the DFA costs P950 plus P250 for “overtime charges” if the applicant was in a hurry and opted to use the express lane service.
He said the old maroon-colored machine readable passport cost only P550, or P700 “if you want it faster.”
“Except for the electronic chip that is embedded in the e-passport that captures data and security features there are no other enhancements to justify the high cost. Digital products are getting cheaper, not going expensive,“ Tuazon said.
Foreign Assistant Secretary for Consular Affairs Frank Cimafranca, on the other hand, refused to comment and said he would wait for the Congressional probe instead.
“I have not heard about it yet. We have not received any document from Congress so it would be premature to comment on the matter…let’s just wait for the Congressional probe if there’s any,” he said.
The memorandum of agreement that granted APO the authority to print the electronic passport through a new integrated system was signed Oct. 5, 2015 by then Foreign secretary Albert del Rosario and then Presidential Communications Operation Office secretary Herminio Coloma.
APO, which is operating under the PCOO, is described in the agreement as the only Recognized Government Printers that expressed willingness to print the e-passport.
The other two RGPs are the National Printing Office and the Bangko Sentral ng Pilipinas.
“We can outsource the production of passports only to government printing offices, and there are only three such offices: BSP, which didn’t want to continue printing the passports for us; national printing office, which didn’t want the job; and APO production unit,” Jose said.
The agreement was made possible after the Department of Budget and Management issued a Multi-Year Obligational Authority to the DFA for the printing of e-passport for 10 years, covering the period of 2016-2026.
However, DFA’s new partnership with APO was the subject of numerous, high profile criticisms focused primarily on the qualification of the said RGP in printing security documents.
Industry experts point out that proof of APO’s questionable credentials to print passports was its decision to engage United Graphics Expression to fulfill its contractual obligations with the DFA.
A check at its website showed that UGEC is a private printing company that specializes in packaging materials, ads and promos and collaterals.
It has huge printing facilities in Dasmarinas, Cavite.
APO entered into a joint venture agreement with UGEC reportedly for the lease of multi-billion worth of state-of-the-art printing equipment that are now installed and being used at APO’s plant in Malvar, Batangas.
Jose, however, said the DFA was not in the position to take up and assess the said joint venture agreement as its contractual obligations dictate that it will only deal directly with the new APO who is the main contracting party.