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Bureau finds temporary solution to IC card 'crisis'

The National Health Insurance integrated-circuit (IC) card controversy that surfaced on Monday was resolved yesterday after TECO Electric and Machinery agreed to help the Bureau of National Health Insurance (BNHI) tide over its IC card contract gap, the bureau said yesterday.

News of the bureau’s predicament emerged earlier this week after it was revealed that the chairman of TECO — to which the bureau contracted out production of the cards for the past six years — is Liu Chao-kai (劉兆凱), the younger brother of Premier Liu Chao-shuan (劉兆玄).

Bureau head Chu Tzer-ming (朱澤民) said on Monday that in accordance with the Civil Servants’ Conflict of Interest Prevention Act (公務人員利益迴避法), the contract would not be renewed after it expires today.

The decision would have meant that as many as 800,000 people might have to be issued paper insurance cards during the next six months — the time required by the bureau to find a new contractor.

The problem was resolved yesterday after the bureau said in a press conference that TECO had agreed to one of the solutions proposed by the bureau, which was to lend the card-making equipment to the bureau for free until the bureau finds a new contractor, Chu said.

“Blank IC cards will be purchased by the bureau from TECO and [bureau employees] will make the cards themselves. TECO will also provide technical training for handling the machines,” Chu said.

While the bureau had proposed other alternatives, “one of the worst case scenarios would have been for the bureau to discontinue issuing IC cards,” Chu said, adding that all things considered, “the situation turned out to be quite good.”

The BNHI-TECO contract is still good for another 500,000 IC cards, which should give the bureau another four months, Chu said, adding that the bureau hoped to find a new contractor as soon as possible.

In response, the Democratic Progressive Party (DPP) caucus said yesterday the premier or his brother should resign to prevent a conflict of interest.

DPP caucus whip Chang Hwa-kuan (張花冠) told a press conference that TECO was “lucky,” as it had won several contracts from the government, including making IC cards for the bureau, a build-operation-transfer contract for renovation work at Wanhua Train Station and a contract to build a wind power station.

Chang said that if TECO were allowed to retain government contracts, the premier should step down.

DPP Legislator Chen Ting-fei (陳亭妃) said that while the Department of Health had already been informed that the bureau might be required to terminate its contract with TECO in April, it only made the matter public on Monday.

“Did the department hide the matter to protect the premier from getting into trouble?” Chen asked.
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