A Study On The Feasibilty of Information Sharing Among Selcted Government Agencies in The Context

A STUDY ON THE FEASIBILITY
OF INFORMATION SHARING AMONG

SELECTED GOVERNMENT AGENCIES
IN THE CONTEXT OF ESTATE TAX
COLLECTION
Andrei D. Coronel, M.S.
August 2007
DISCLAIMER
“The views expressed in this report are strictly those of the authors and do not necessarily reflect those of
the United States Agency for International Development (USAID) and the Ateneo de Manila University”.
Feasibility Study of Info-Sharing Among Selected Gov’t Agencies Page 1 of 27
EPRA Tax Administration Sector
August 2007
A Study on the Feasibility

Of Information Sharing Among
Selected Government Agencies
In the Context of Estate Tax Collection
A Report by:
Andrei D. Coronel, M.S.

CS Program Director/Faculty/Research Analyst
Department of Information Systems and Computer Science
Ateneo de Manila Loyola Schools
Based on
“Tax Evasion Practices on Philippine Estate Tax”
in fulfillment of the requirements stated by :
The Economic Policy Reform and Advocacy

Ateneo de Manila University
Not for quotation, distribution or publication

without the written consent of EPRA
August 2007
I. Introduction
The study entitled “Tax Evasion Practices in Philippine Estate Tax” has
presented several common tax evasion techniques. The study exposed the procedures for
effectively avoiding tax payments, particularly payments for estate tax. A quantifiable
portion of the population can effectively bypass estate tax payments, and because of this,
there is a need to identify potential estate tax payers and legitimize their property records.
Although it was also noted that estate taxes contribute to only a small portion of total tax
revenue, the same study has stated that the Bureau of Internal Revenue views estate taxes
as a significant area in which collection efforts can be improved. The development of
procedures for an improved estate tax collection will inevitably improve the BIR tax
effort. The analysis of these findings led to several recommendations, one of which is
addressed in this report. The following sections of this report address one
recommendation of the said study.
II. Objectives of the report
The third recommendation of the aforementioned study is stated as follows:
3. Enforce coordination and the sharing of relevant information among

government agencies.
In view of this recommendation, the following are the objectives of this report:
1. To assess the level of computerization of agencies concerned (National Statistics
Office, Civil Registry, and Registry of Deeds (under the Land Registration
Authority and Land Transportation Office).
2. To identify and propose the parameters of information sharing among the
agencies.
3. To provide a snapshot view on how information sharing can be achieved

August 2007
4. To identify the opportunities and constraints for information sharing arrangements
among the said agencies.
III. Computerization Level Assessment
The following is an assessment of the computerization level of the specific
government agencies that can potentially be involved in information sharing for better
methods in collecting estate taxes. The details that follow were gathered through one or a
combination of the following methods:
1. Personal interviews with government employees.
2. Observations and interviews resulting from actual site visits.
3. Scheduled personal interviews with known consultants of the specific agencies.
4. Online resources such as web-services offered by the government agency and/or
their official website.
5. Downloadable documents and forms from websites recommended by the
aforementioned sources.
The depth of the following assessments may be limited by the information that the
sources willingly reveal.
Land Registration Authority
The Registry of Deeds under the Land Registration Authority (LRA) was
proposed to deploy and operate a fully functional land registration system developed by
STRADCOM. According to a source, the system was already ready for operation. A
substantial amount of relevant data previously recorded on paper-based records were
digitized, including all required fields/attributes pertaining to the registration of real

August 2007
property. The digitized data was integrated into a complete database, enabling authorized
users to perform the necessary queries concerning details of all land registration records.
The database includes a collection of graphical views of land areas in digital format. The
attributes of the land area on display, inclusive of the physical attributes of the land itself
as well registration details are readily accessible through the use of an intuitive graphical
user interface. Modifications in land registration are easily executed by changing the
necessary fields in the database through the said interface. Important paper-based forms
such as titles for land ownership are also available in digital format for proper electronic
archiving and future reference.
According to the document entitled “Report on the Sectoral Performance Audit of
the Land Registration Authority Land Titling Computerization BOT Project” dated last
2004, the Land Titling Computerization Project (LTCP), one of several contracted BOT
projects covers the computerization of 124 Registry of Deeds (RDs), 14 Regional
Registry of Deeds (RRDs) and the central LRA office. The intention of the project was to
address the following problems affecting the functional efficiency of LRA:
• Substitution and/or insertion of fake titles at the regional district level;
• Unsystematic records management;
• Difficulty in storing and maintaining large volumes of paper and
microfilm;
• Variance of procedures in the RDs;
• Slow processing of transactions and queries; and
• Inadequate equipment and personnel.

August 2007
According the audit conclusion from the report, the LTCP was “not efficiently and
effectively implemented and both government and public interest are not adequately
protected under the contract.”
The report noted that the implementation of the LTCP project was “adversely
affected by the apparent failure of LRA to decide on the new features necessitating
numerous revisions/data conversion issues and inability of the project proponent to
provide adequate funds to complete the project. “
According to the report, the absence of control mechanism to protect both
government and public interest may be seen in the following cases:
• The project was undertaken under a BOO contract where only database
will be owned by the LRA at the end of concession period. The IT
facilities and application systems, the costs of which were recovered from
the users, remained property of the proponent. Under this condition, the
project continuity would be adversely affected unless the LRA would be
able to renegotiate or be able to acquire the necessary systems and
facilities at the end of the contract.
• There was no rate of return prescribed for the project. The absence of a
prescribed reasonable rate of return would in effect allow the proponent to
earn unlimited rate of return at the expense of the public. Moreover, the
contract provides for automatic fee adjustment without taking into account
increase in volume of transactions.
• The contract failed to include provisions for penalties in case of delay in
project implementation schedules and revenue sharing in case of windfall

August 2007
increase in volume of transactions. Thus, while the project proponent was
not able to deliver on time, no penalties could be imposed under the
contract
This system potentially presents the Land Registration Authority as an agency
having a high level of computerization that is quite feasible for the proposed information
sharing in the context of estate tax collection. However, the contract for the deployment
and utilization of the said system is under voluntary arbitration for reasons not disclosed
by the source. This has left the LRA operating under previous processes such as paper-
based data collection, archiving and querying. Since the voluntary arbitration issue has
not yet been resolved, it is therefore premature to note that LRA has a high level of
computerization that is readily fit for digital information sharing.
National Statistics Office and the Civil Registry
The National Statistics Office (NSO) is continually evolving the automation of its
operational procedures to compensate for the large volumes of data that their offices
constantly receive. The motion to use stand-alone PC desktops instead of a previously
utilized mainframe computer was implemented during the execution of the 1990 Census
of Population and Housing. That following year, the stand-alone computers were linked
as local area network connections were established across the machines. This was a
necessary step taken by the agency to allow the implementation of Intelligent Character
Recognition (ICR) technology for data input (an automated data input technique where
the data are automatically entered in the computerized records by scanning paper-based
forms). This technology was used to conduct the 2000 Census of Population and

August 2007
Housing. The effective use of ICR technology necessitates the existence of an organized,
working database maintaining digital records. On that same year, the Civil Registration
System Information Technology Project (CRS-ITP), a 2.12 billion-peso computerization
project, was launched. According to the estate tax study, the Civil Registry plays a major
role in the potential improvement of estate tax collection procedures since the registry is
the first node of the information link regarding death records. It is in this context where
the automated Civil Registration system may come into play.
The CRS is a system developed and maintained by Unisys, Philippines, the
project proponent selected through the build-operate-transfer (BOT) bidding process.
The Civil Registry regularly sends batches of paper-based records, including those
concerning the deceased, to the NSO, the final node for all statistical data of the state.
Implementation of the CRS prompted NSO to digitize their archived documents, and with
the presence of CRS outlets, civil registry documents coming from local civil registry
offices are digitized to update the CRS database.
The functional system claims to be able to provide the public with their requested
civil registry documents within the same day of request in a matter of hours. Since June
2002, the number of records that have been digitized count to the millions. The services
offered in each of the Census Serbilis Centers (CenSCs) in Metro Manila are available in
the regional satellite outlets, thus indicating a satisfactory level of automation as a result
of computerization. Today, the e-Census websites of the NSO also offer several similar
services to the public through a web-based document requesting system, further
signifying the satisfactory level of computerization and automation. The implementation

August 2007
the CRS makes the Civil Registry Department of the NSO feasible for efficient
information sharing across several government agencies.
In the context of estate tax, records of death contain the relevant fields that may ideally
be shared.
Based on the e-Census web pages, the following table shows fields that may be
incorporated in the potential information-sharing scheme:
FIELDS POTENTIALLY RELEVANT FOR OTHER FIELDS

INFORMATION-SHARING IN THE CONTEXT
OF ESTATE TAX COLLECTION
NAME LATENESS OF REGISTRATION (Y/N)
- last name
- first name
- middle name
DATE OF DEATH PURPOSE OF REGISTRATION
- month - claim benefits/loan

- day - employment (abroad)
- year - employment (local)
- passport/travel
- school requirements
PLACE OF DEATH SEX

- country
- province.
- city/municipality
REGISTRATION DATE PARTICULARS

- month
- day.
- year
RESIDENCE
An interview with Civil Registration Department Director Lourdes Hufana
verified that NSO is on the 7th year of a 12 year project partnership with Unisys, noting
that the database that their department maintains belongs to Unisys and not to NSO.

August 2007
However, the Civil Registration Department is open to providing an index file generated
from this database. Before 1997, generated index files can only contain names,
residences, place and date of death of the deceased. After 1997, all fields from the death
certificate may be included in the index file.
We were informed that from approximately 3.4 million documents submitted to
the Civil Registry per year, 400,000 of these records correspond to deaths, giving an
approximate average of 1000 deaths registered per day.
Director Hufana has also pointed out that they have been providing index files to
the Philippine Veterans Association (PVAO) on a yearly basis for the cost of 0.875
centavos per record. Other previous requests for sharing index files involve GSIS and
COMELEC.
The current automation of the Civil Registration Department and their previous
arrangements for similar information sharing schemes add to the feasibility of NSO to
involve itself in potential information sharing scheme with BIR in the context of estate
tax collection.
Securities and Exchange Commission
The Philippine Securities and Exchange Commission (SEC), like LTO, operates
with both manual and automated processes. A substantial amount of data maintained by
SEC, however, is already in digitized form. The Commission employs the SEC i-Register
Version 2 Facility (Figures 6-7), an enhanced version of the original i-Register facility,
the agency’s web-based company registration system. This takes advantage of online
technologies to provide service to the community. The first version of this online

August 2007
registration system has been available since four years ago. This implies that a significant
amount of data maintained by the Commission to already be in digitized/soft format. An
organized, working database back-end is necessary for the online implementation of a
data input system such as SEC i-Register. The said system supports features such as
name verification, company name reservation/cancellation and search features, all of
which are DB-based features where an integrated back-end is vital to its operation. This
presents that the level of computerization of SEC is satisfactory for information sharing
with other government agencies. Depending on the willingness of SEC to share data that
they maintain, the commission may be able to provide company names and relevant
individual names involved in transfers of company ownership to pursue information
sharing in the context of estate tax collection.
Land Transportation Office
The tax evasion study recommends that the Land Transportation Office (LTO)
can contribute in the suggested information-sharing system for better estate tax collection
by utilizing the data that the agency maintains regarding the legal ownership of vehicles.
Operations of the LTO are a hybrid of both computerized and manual procedures.
As one of the private sector proponents for government information technology projects,
STRADCOM is involved in the development of the Motor Vehicle Registration System
(MVRS), Law Enforcement and Traffic Adjudication System (LETAS), Manufacturers
Assemblers Importers Dealers Reporting System (MAIDRS), and Driver’s Licensing
System (DLS). The system that holds information related to estate tax procedures is the
MVRS since it maintains digitized/soft records of registration data. These are data

August 2007
relevant for the improved estate tax collection since it contains accurate records of
vehicle ownership.
The MVRS is a computerized system under the LTO-IT Project. The system
contains organized records of vehicle data and their respective owners integrated into a
working database. It is a system that allows authorized users to perform routine queries to
the database whenever necessary. Modifications in vehicle registration records are easily
executed by changing the required fields in the database through the user interface.
The study notes that data concerning transfers of vehicle ownership are the
relevant data in the context of estate tax collection. The important fields that are
electronically available from the LTO are the following:
- Name of original vehicle owner
- TIN of original vehicle owner
- Name of new owner of the vehicle
- TIN of new owner of the vehicle
- Type of vehicle
The current operation of their automated procedures presents LTO as an agency
having a sufficient level of computerization for information sharing in the context of a
larger system for estate tax collection.

August 2007
IV. Overview of the Information Sharing Scheme
The following procedures and corresponding diagrams aim to give an overview of a
feasible information-sharing plan among government agencies for a better system in
collecting estate taxes. The suggested scheme is based on the 3rd recommendation of the
abovementioned tax evasion study. However, it is important to note that this proposed
plan does not yet involve the LRA.
a. Possible data flow for information sharing
Shown below is the context-diagram for a possible system for information sharing in
the context of tracking individuals slated for estate tax payment:
Figure 1: Context diagram showing possible data flow for an information-sharing system across
government agencies

August 2007
The context diagram above (Figure 1) illustrates the general overview of the data
flow for the information-sharing plan across government agencies in the context of estate
tax. As seen in figure 1, the The external data sources are the Civil Registry of the NSO,
Land Transportation Office and Securities and Exchange Commission. The data coming
from these agencies are tabulated below:
Government Agency Data that can be shared with the proposed

system
NSO (through the Civil Registry System) -Name of the deceased
-Residence of the deceased
-Place of death
-Date of death
Land Transportation Office -Name of original car owner
-TIN of original car owner
-Name of new car owner
-TIN of new car owner
-Vehicle type
Securities and Exchange Commission - Names of registered companies involved in
transfers
- Names of original company owners
- Names of the new company owners
Table 1: This table enumerates what electronic data each agency can submit to the BIR.
Inputs of the system will be coming from the agencies enumerated. Data may be
received by the BIR in the form of index files from each agency. These files are a listing
of records containing the fields tabulated above.
Shown next (Figure 2) is a more detailed breakdown of the scheme.

August 2007
Figure 2: A more detailed level one diagram illustrating the data flow among agencies

August 2007
The following is an enumeration of the steps illustrated by Figure 2:
1. The NSO (through CRS), LTO and SEC will submit/send/share data to BIR.
2. BIR National Office will cross-match the data received from the other agencies
with their own records. A revised list will be generated, listing those identified to
pay estate tax and their residences.
3. The list of identified entities to pay estate tax is organized according to residence,
and is distributed accordingly to the regional offices
4. The regional BIR offices can validate reported deaths with the acquired names to
check for fraudulently reported deaths. Necessary action to pursue the targeted
individuals for estate taxation may be done on a regional basis
b. Possible Constraints in Development
The following is an enumeration of the identified constraints that can hinder
the development of the information-sharing scheme for estate tax collection:
1. A scoping of NSO (Civil Registration Dept), LTO and SEC reveal the
existence of automation and existence of electronic data. However the
willingness to share data may not be uniform for all agencies
2. It may be necessary to develop a software application to automate the
cross-matching of the index files with BIR records
3. Modifications in the operational procedures of the involved agencies may
be met with a resistance to change from the point of view of the agency and
its employees.

August 2007
V. Conclusions
Based on the information gathered by the author of this report, the
following agencies utilize computerized systems and maintain digitized data:
1. Civil Registry Department of the NSO (System developed by Unisys).
2. The Land Transportation Office (Motor Vehicle Registration System under the
LTO-IT project, developed by STRADCOM)
3. The Securities and Exchange Commission
The readiness of the Registry of Deeds under the LRA to participate in the
electronic information-sharing scheme is dependent on the active implementation of
their computerized land registration system developed by STRADCOM.
The information-scheme explained in this report is not the only scheme
feasible for our current government set-up. It suggests one of several ways better
estate tax collection procedures may be improved.

August 2007
VI. Assessment on the Third Recommendation of the Tax Evasion Study
The third recommendation of the Tax Evasion Study states the following:
"Enforce coordination and the sharing of relevant information among government

agencies."
To implement this, the study suggests that government agencies should regularly
report relevant data to BIR for the purpose of cross-referencing and the proper updating
of existing BIR records pertaining to taxes paid for property transfers, capital gains,
donor's and estate taxes.
In view of this, the study makes a specific suggestion on how to improve
information sharing between the civil registers and the BIR. At present, the relatives of
the deceased would need to apply for a death certificate through the completion of an
application form. In the suggested implementation, the BIR would provide two additional
items to distribute to the relatives of the deceased: an informative printed medium
(brochure/leaflet) containing matters regarding the payment of estate taxes, and a Notice
of Death form. This additional form would ask for relevant data on property and property
transfers necessary to compute applicable taxes. This suggested form would be submitted
along with the regular application form for the death certificate.
The implementation of this suggestion is recommended since it directly provides
a connection between the civil registers and the BIR. This sharing of information will
provide BIR with updated data regarding deceased individuals and the details of their
property and other relevant data that may be gathered in the civil registry level.

August 2007
The current existence of a Civil Registry System (CRS) that automates several
processes between the civil registries and the NSO makes this information sharing
scheme even more feasible. Since it is already possible to apply for death certificates
online, it would also be possible to provide online applicants with a web page that would
contain the same fields as the proposed Notice of Death form. This implementation will
oblige online applicants of death certificates to answer BIR’s relevant questions
concerning taxation through the online interface. Any necessary information the
applicants would have to know regarding estate taxes can easily be posted online. It is
possible to construct the web pages in such a way that it is necessary for online applicants
to read the posted information (i.e. an implementation of an "i agree" radio button before
the website reverts to the application for death certificate page). The online version of the
Notice of Death Form can be positioned in the website in such a way that answering it is
part of the necessary process of applying for death certificates. Data gathered this way
will cover individuals who avail of the NSO's online services for document application.
Even if online facilities are available, providing hard copies of this new Notice of
Death form along with any informative sheets should not be neglected since a large
number of the population do not apply for death certificates online. For those who apply
for these documents by traditionally filling up hard-copy forms, the distribution of a hard-
copy Notice of death form is what will work for them. This, as the study points out, will
be collected by the local civil registers and reach the NSO office. The application forms
for the death certificates would ultimately be collected by the NSO for the processing of
the requested documents, while the Notice of Death forms will be with BIR for the
updating of data regarding deceased individuals and the taxes applicable to them.

August 2007
The following comments provide a summary for the discussion:
1. Providing properly constructed Notice of Death forms that would contain fields
necessary for the BIR to gather taxation related data on deceased individuals is a realistic
idea that would enforce information sharing to the level of the civil registers.
2. An online version of the proposed Notice of Death form is recommended. This online
version of the proposed form may be integrated with the existing online facilities for
death certificate application. This would address individuals who avail of these online
services.
3. Online and offline (hard-copy) procedures should both be implemented, since only a
portion of the population avail of the online services and a large part of the population
would still apply for death certificates by filling out and submitting actual paper-based
forms.
4. The offline recommendation for providing informative sheets containing taxation
information to relatives of the deceased is feasible. This may also be implemented online
by constructing a web page that would oblige online applicants to read the BIR related
information posted on the site.

August 2007
VI. Appendix
Listing of Available Fields
The following is a list of fields pertaining to data previously assessed to be available in

electronic form. Availability of data in electronic form is here defined as data saved in
organized electronic format (i.e. MS Excel spreadsheets) or data incorporated as actual
fields in an existing database system, regardless of database complexity. The fields are
limited to those relevant to records of death, as well as ownership of registered property.
National Statistics Office and Civil Registry
Through the CRS-ITP (Civil Registration System – Information Technology Project), a

project of NSO in partnership with Unisys, Philippines, there are online facilities that
reveal the particular fields concerned with the application of death certificates.
Available Fields
(SOURCE: www.ecensus.com – mock application for a death certificate)
Relevant:
1. Name
a. Last name
b. First name
c. Middle name
2. Date of Death
a. Month
b. Day
c. Year
3. Place of Death
a. Country
b. Province
c. City/Municipality
4. Registration Date
a. Month
b. Day
c. Year
May not be relevant:
1. Number of copies of death certificate

August 2007
2. Sex
3. Purpose for Application
a. Claim Benefits/Loan
b. Employment(Abroad)
c. Employment(Local)
d. Passport/Travel
e. School Requirements
f. Others
4. An empty field for specifying particulars
Land Transportation Office
The implementation of the STRADCOM developed Motor Vehicle Registration System

(MVRS) by the Land Transportation Office indicate the existence of electronically
available fields in the context of vehicle registration.
The following fields are limited only to those relevant to vehicle registration in the
context of the owner, not the car (details such as number of car doors, car color, etc are
omitted)
Available Fields
(SOURCE: Freely downloadable documents in PDF format from http://www.lto.gov.ph/ )
1. Owner’s complete name and address (one field only)

2. Vehicle Acquired from [complete name and address] (one field only)
3. Encumbrance [company name and address] (one field only)
4. Kind of vehicle
a. New
b. 2nd Hand
c. Rebuilt
d. Car
e. Truck
f. Hire
g. MC
h. TC
i. Others
5. Agency
6. Date
7. Authorized agency [for hire only]
8. File number
9. Type of registration
a. New
b. Renewal

August 2007
c. Others
10. Insurer
11. Policy number
12. Expiry date
13. Certificate of cover number
14. Endorsement
15. Date of endorsement
Securities and Exchange Commission
The Securities and Exchange Commission has an online registration facility termed as the
SEC i-Register, which may be accessed through http://iregister.sec.gov.ph/
The existence of such facility indicates the existence of electronically available fields. A
mock registration however, revealed that the online facility only serves as a reservation
system for a company name, along with several company details. Complete company
registrations and related transactions are not met by this web service.
Available Fields
(SOURCE : http://iregister.sec.gov.ph/ -- mock registration of a non-existent company)
1. Selection of company type (select an option)

a. Stock corporation
b. Non-stock corporation
c. General partnership
d. Limited partnership
e. Professional partnership
f. Foreign stock
g. Foreign non-stock
h. Foreign partnership
2. List of industries requiring endorsements (select an option)

a. Private preschool educ. Services
b. Private elementary education
c. Private general 2ndary education
d. Private technical and vocational post secondary non-degree education
e. Activities of Professional Organizations
3. Proposed company name

4. Company suffix
5. User Profile
a. First name
b. Middle name
c. Last name

August 2007
d. Gender
e. Birthdate
i. Month
ii. Day
iii. Year
f. country
g. Province
h. State (for non Philippine residents)
Screen Shots:
Figure 3: Screen shots of e-Census developed by Unisys, top portion

August 2007
Figure 4: Screen shots of e-Census developed by Unisys, middle portion

August 2007
Figure 5: Screen shots of e-Census developed by Unisys, bottom part

August 2007
Figure 6: Screen shot the SEC I-Register System, first page

August 2007
Figure 7: Screen shot the SEC I-Register System, second page


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A STUDY ON THE FEASIBILITY

OF INFORMATION SHARING AMONG

Andrei D. Coronel, M.S.

A Study on the Feasibility

Andrei D. Coronel, M.S.

“Tax Evasion Practices on Philippine Estate Tax”

in fulfillment of the requirements stated by :

The Economic Policy Reform and Advocacy

Not for quotation, distribution or publication

as a significant area in which collection efforts can be improved. The development of

recommendation of the said study.

II. Objectives of the report

The third recommendation of the aforementioned study is stated as follows:

3. Enforce coordination and the sharing of relevant information among

1. To assess the level of computerization of agencies concerned (National Statistics

Authority and Land Transportation Office).

2. To identify and propose the parameters of information sharing among the

3. To provide a snapshot view on how information sharing can be achieved

Not for quotation, distribution or publication

4. To identify the opportunities and constraints for information sharing arrangements

among the said agencies.

III. Computerization Level Assessment

The following is an assessment of the computerization level of the specific

combination of the following methods:

1. Personal interviews with government employees.

2. Observations and interviews resulting from actual site visits.

3. Scheduled personal interviews with known consultants of the specific agencies.

4. Online resources such as web-services offered by the government agency and/or

their official website.

5. Downloadable documents and forms from websites recommended by the

sources willingly reveal.

Land Registration Authority

substantial amount of relevant data previously recorded on paper-based records were

digitized, including all required fields/attributes pertaining to the registration of real

Not for quotation, distribution or publication

archiving and future reference.

According to the document entitled “Report on the Sectoral Performance Audit of

projects covers the computerization of 124 Registry of Deeds (RDs), 14 Regional

address the following problems affecting the functional efficiency of LRA:

• Substitution and/or insertion of fake titles at the regional district level;

• Unsystematic records management;

• Difficulty in storing and maintaining large volumes of paper and

• Variance of procedures in the RDs;

• Slow processing of transactions and queries; and

• Inadequate equipment and personnel.

Not for quotation, distribution or publication

protected under the contract.”

numerous revisions/data conversion issues and inability of the project proponent to

provide adequate funds to complete the project. “

According to the report, the absence of control mechanism to protect both

government and public interest may be seen in the following cases:

will be owned by the LRA at the end of concession period. The IT

project continuity would be adversely affected unless the LRA would be

able to renegotiate or be able to acquire the necessary systems and

facilities at the end of the contract.

prescribed reasonable rate of return would in effect allow the proponent to

increase in volume of transactions.

• The contract failed to include provisions for penalties in case of delay in

project implementation schedules and revenue sharing in case of windfall

Not for quotation, distribution or publication

increase in volume of transactions. Thus, while the project proponent was

not able to deliver on time, no penalties could be imposed under the