MANILA (UPDATE) -- The company originally contracted by the Bangko Sentral ng Pilipinas to produce National IDs said it is challenging the termination of its contract. 

The BSP on Friday said its contract with AllCard Incorporated (ACI), the supplier of national IDs, is the subject of pending arbitration. In a statement, the central bank said, "In light of the confidentiality of arbitration, BSP is prohibited from disclosing matters relating to the proceedings."

It was Finance Secretary Ralph Recto who confirmed with ABS-CBN News Thursday that the BSP had terminated its contract with the national ID supplier. Recto said the decision was “due to the supplier's non-compliance with the contract.”

Meanwhile, AllCard Incorporated said in a statement that it was in “full compliance with all contractual obligations” and that the termination of its contract may have been based on “ inaccurate or incomplete information, given that there has been no breach of contract.” The company added that it filed a motion for reconsideration on Thursday. 

“AllCard has diligently complied with the contractual obligations set forth in the Lot 1 Contract, as per the BSP’s Technical Specifications and Terms of Reference. We have provided the necessary equipment, technical and maintenance support personnel, and conducted training for BSP and Philippine Statistics Authority personnel, as required,” AllCard said. 

The company said it is seeking a comprehensive review of its performance under the contract. 

“We are taken aback by the Monetary Board’s decision to terminate the contract. This move is not only unjust and unfair but also detrimental to the smooth implementation of Republic Act 11055,” said AllCard President Roy Ebora. 

The company added that the termination of its contract may cause significant delays in the issuance of millions of National IDs. This will also “lay waste to approximately 60 million already produced cards, resulting in substantial financial loss and inefficiencies, said AllCard.

For his part, former Senator Ping Lacson said ending the contract with AllCard should not end with "a simple termination."

"Following proper legal procedures, sanctions with commensurate damages must be imposed," he stressed.

"Failure to fully implement the Philippine Identification System Act (RA 11055) six years after its passage is unacceptable," he added.

The Philippine Statistics Authority (PSA), which is in charge of issuing the national IDs, said it remains committed to making sure that all registered Filipinos receive their ID. The PSA advised the public that aside from the physical ID, the national ID can be acquired in other formats.

Registered individuals can get their ePhilID from registration centers while the Digital National ID can be downloaded through https://national-id.gov.ph.

Some 50 million national IDs have been delivered, the PSA said on March 15. 

The state statistics bureau hopes to sign up some 92 million Filipinos to the national ID system by the end of the year.