Botched eID roll-out expected to cost taxpayers NT$280 million

Taipei, March 5 (CNA) The indefinite suspension of a controversial electronic ID program is expected to cost taxpayers up to NT$280 million (US$8.87 million), after the government agreed compensation terms with bid-winning contractors.

The Public Construction Commission under the Executive Yuan, which oversaw the bid process, had reached an agreement with contractors to reduce the amount of compensation, Premier Chen Chien-jen (陳建仁) told reporters before an interpellation at the Legislative Yuan Tuesday.

"Hopefully, the amount will be less than NT$280 million," Chen said.

According to local media reports, contractors involved in the project were originally seeking NT$524 million for equipment costs and maintenance fees plus NT$526 million in compensation.

At a Legislative Yuan hearing on Monday, Wu Tse-cheng (吳澤成), head of the Public Construction Commission, said an agreement was reached in January this year following several rounds of mediation.

According to Chen, contractors agreed that compensation should be around NT$280 million.

Regarding the concerns over personal information leaks, the government is setting up a personal information protection committee and will enact relevant laws, Chen said.

Despite persistent concerns from civil society groups and experts over a lack of regulatory oversight, the government accepted bids for the electronic ID system's construction in early 2020, with a scheduled roll-out date of July 2021.

In April 2020, a petition started by the Taiwan Association for Human Rights and backed by academics and industry representatives called on the government to first establish laws similar to the European Union's General Data Protection Regulation.

Amid continued opposition, the Executive Yuan announced in January 2021 that the introduction of the cards would be suspended "until a specific law has been established as a legal basis to govern the matter."