Government Service Insurance System (GSIS) of Philippine has sent a final demand letter to IBM, seeking compensation for supplying the Philippine state pension fund with allegedly defective software.
Before the glitch, GSIS was reportedly able to process 40,000 transactions a day but now, as Consuelo Manansala, GSIS executive vice president, claims, it has 20,000 claims in the pipeline.
However, in spite of the delay, the pension fund remains capable of processing applications though backlog is pilling up.
IBM Philippines stated that it did not have any direct business involvement with the state pension fund.
The company said that GSIS did not engage it in the selection, customisation and implementation of this system. IBM was only the OEM (original equipment manufacturer) provider. It further added that because of its long-standing relationship with the pension fund, IBM has been working with GSIS’ solutions provider to resolve GSIS’ system issues.
