GSIS Sues IBM, Subsidiary For P100 Million

GSIS sues IBM, subsidiary for P100 million | Philstar.
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GSIS sues IBM, subsidiary for P100

million
- Iris Gonzales -
June 4, 2009 | 12:00am
MANILA, Philippines – The Government Service Insurance System (GSIS

Hled yesterday a case against IBM Corp., IBM Philippines, and IBM business
partner Questronix Corporation for allegedly supplying defective software to the
state pension fund.
In a 19-page complaint Hled before the Pasay Regional Trial Court, GSIS asked
the court to order IBM to pay GSIS P100 million in damages and to be liable for
https://www.philstar.com/business/2009/06/04/473860/gsis-sues-ibm-subsidiary-p100-million Page 1 of 14
GSIS sues IBM, subsidiary for P100 million | Philstar.com 2/25/22, 2:31 PM
breach of contract when it allegedly supplied defective software to GSIS.
The case stemmed from IBM’s database management software, called the IBM
DB2, which GSIS said has resulted in intermittent crashes in the GSIS system.
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This, the agency said, has paralyzed the agency’s operations.
In its complaint, GSIS said that in 2006, Questronix won the bid to implement
the Integrated Loans, Membership, Acquired Assets and Accounts Management
System (ILMAAAMS) project of the GSIS worth P80 million.
The project was supposed to handle all information and processing

requirements of membership, loans origination and administration, acquired
requirements of membership, loans origination and administration, acquired

assets, and accounts management of the GSIS.
Questronix used the IBM DB2 to manage the database.
However, the system crashed last March 30 which GSIS said affected 90
percent of its operations, including processing of loans and claims and updating
of membership records.
“Weeks passed but no one was able to explain the cause of the crash, much
less, provide a solution,” the GSIS said in its complaint.
Last May 12, the GSIS sent a demand letter to IBM Philippines, Questronix, and
SAP Philippines, among others, threatening legal action if the database crashes
remain unresolved within the next three days.
GSIS said that IBM has yet to provide a new platform that would permanently
solve the database crashes.
The GSIS is also suing Questronix because the IT contractor failed to honor a
provision in its contract, which said the supplier must remedy defects in the
project.
IBM, for its part, said that it played no role in the supply, installation and support
of the GSIS system.
“Nonetheless, since being contacted about GSIS’ problems, IBM has worked
with its partners to try to help resolve the problems apparently caused by GSIS’
failure to follow industry norms and best practices in the handling of its data.
IBM DB2 has thousands of clients globally, and to date, GSIS is the only
organization to report these type of issues. IBM has been a dedicated partner
and corporate citizen of the Philippines since 1937, and thousands of satisHed
customers rely upon IBM products and solutions every day.”
ACQUIRED ASSETS AND ACCOUNTS MANAGEMENT SYSTEM GOVERNMENT SERVICE INSURANCE SYSTEM
GSIS IBM INTEGRATED LOANS LAST MAY PASAY REGIONAL TRIAL COURT PHILIPPINES QUESTRONIX
QUESTRONIX CORPORATION SYSTEM
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GSIS sues IBM, subsidiary for P100 million | Philstar.

com 2/25/22, 2:31 PM

HOME HEADLINES OPINION NATION WORLD

STOCK COMMENTARIES #VACCINEWATCHPH TECHNOLOGY

GSIS sues IBM, subsidiary for P100

MANILA, Philippines – The Government Service Insurance System (GSIS

breach of contract when it allegedly supplied defective software to GSIS.

Japan won't rule out airstrikes on

This, the agency said, has paralyzed the agency’s operations.

The project was supposed to handle all information and processing

requirements of membership, loans origination and administration, acquired

Questronix used the IBM DB2 to manage the database.

QUESTRONIX CORPORATION SYSTEM

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