IBM-GSIS row heats up over faulty database

By Alexander Villafania - INQUIRER.net

The dispute over the problematic database system of the Government Service Insurance System (GSIS) continues to worsen as the government agency’s legal counsel accused IBM of providing a defective product.

IBM is guilty of false advertising for denying customers with proper after-sales services, GSIS chief legal counsel Estrella Elamparo said in a statement, saying the technology company sold the agency a “lemon”, a derogatory term for a defective product.

She also said that the “special build” to fix the constant crashes of the GSIS’s Integrated Loans, Membership, Acquired Assets and Accounts Management System (ILMAAAMS) did not work, describing it as a “clunker.”

She also claimed that IBM’s Canada Laboratories admitted to having supplied GSIS with a defective product.

“IBM cannot smokescreen the fact that its database management software caused a crash in the GSIS system at just two terabytes of data when that software was purportedly able to handle 512 million terabytes,” Elamparo said.

IBM Philippines countered Elamparo’s accusations with an official statement, stating that IBM provided free support to the agency even if it was not involved in the implementation of the ILMAAAMS.

The company also said that it sent two special builds developed in IBM’s Toronto Lab to the GSIS in May, a few weeks after the series of crashes suffered by ILMAAAMS. IBM claimed that the second special build is already working successfully.

IBM also belied Elamparo’s claims that IBM Laboratories in Canada admitted to problems with their product and that it was not them who directly supplied the product to GSIS.

At the center of the controversy is IBM’s DB2 database software, which was the main application for ILMAAAMS. The GSIS first suffered crashes in April this year, which became more frequent in the following weeks.

IBM and the ILMAAAMS system integrator Questronix argued that GSIS failed to implement critical disaster recovery measures to prevent problems. They also stated that GSIS’s corrupted back ups worsened their situation.

GSIS filed a P100 million suit against IBM, its Philippine subsidiary, and Questronix for breach of contract. GSIS added a libel case against Questronix for allegedly making false claims that were published.

IBM countersued with a P200 million libel suit.

‘Highly unusual’ data handling caused GSIS database system crash, says IBM

‘Highly unusual’ data handling caused GSIS database system crash, says IBM

IBM PHILIPPINES, Inc. has rejected allegations of inefficiency and negligence made by erstwhile client Government Service Insurance System (GSIS), saying it has provided enough technical support for the state pension fund’s database system.

IBM said during the weekend that it actively participated in fixing GSIS’s database after it crashed in March despite having no contract and involvement in the supply design or installation of the system.

"IBM Philippines completely rejects the assertions made by the GSIS against IBM and its affiliates in paid newspaper and television advertisements," IBM said.

"This year, IBM Philippines celebrates its 72nd anniversary of serving our clients in the Philippines. During IBM Philippines’ long history as a member of this business community, it has always attempted to resolve issues with clients in a constructive and respectful manner."

IBM trades legal suits with Philippine govt agency

The local unit of US computer giant IBM has filed a libel suit against a Philippine government agency after being accused of selling it faulty software, court records showed Friday.

IBM Philippines filed against the Government Service Insurance System (GSIS) after an advertising campaign in which it claimed the US giant had sold it faulty software.

IBM Philippines said the GSIS ads in local newspapers "were not only false and misleading, but were motivated by ill will and malice."

The computer firm is demanding P205 million (US$4.33 million) in damages and legal expenses.

IBM said GSIS had acquired the faulty software from a local joint venture of three local firms that IBM Philippines was not a party to.

"IBM was not involved in the design, supply, installation and maintenance," of the systems, it said in a statement.

GSIS filed a civil suit against IBM Philippines on Wednesday and its US parent over the alleged failure of its software system, demanding more than 100 million pesos in damages and litigation expenses.

GSIS officials also said they had filed suits against the president of Questonix Corp., the firm contracted to install the IBM database management software. Agence France-Presse

GSIS files libel case against IT contractor

By Alexander Villafania - INQUIRER.net

The Government Service Insurance System (GSIS) filed on Thursday a libel case against the head of IT systems integration company Questronix.

The government agency alleged that Questronix President Alex Aloba discredited the government agency through statements published in two major dailies last May 31.

GSIS and Questronix, along with IT services company IBM, are in a bitter dispute over the problematic implementation of a massive GSIS database project.

The libel case against Questronix would be the second against the company, with the first being a breach of contract case that was filed by the GSIS on June 3.

IBM Philippines and its US-based parent company IBM Corporation are also respondents in the first tort and breach of contract case by the GSIS.

GSIS blamed IBM Corporation and Questronix for the constant crashes suffered by its main database infrastructure collectively called ILMAAAMS (Integrated Loans, Membership, Acquired Assets and Accounts Management System), which processes nearly all of the transactions of the GSIS and its more than 1.5 million members.

Questronix is the main contractor to implement ILMAAAMS in 2006.

The project cost was P80 million at that time.

Problems started on March 30 when ILMAAAMS suffered a major crash, resulting in a halt of all transactions for that day.

GSIS Chief Information Officer Helen Macasaet said it had earlier requested Questronix to identify the cause. Questronix later reported alleging problems with the IBM’s DB2 database software were to be blamed.

Macasaet argued that IBM continued to fail in providing a solution despite repeated calls, leading to the decision by the government agency to file a civil case against IBM and Questronix.

The GSIS is also seeking P100 million in damages against the respondents.

In retaliation IBM on June 3 said it is filing a libel case against the GSIS, seeking P200 million in damages. The company accused GSIS of unwarranted public attacks against them.

Prior to the filing of their cases, IBM Philippines insisted that it had no contractual relationship with the GSIS on the ILMAAAMS project, thus it was not present when DB2 was being installed and maintained.

The company also said it has already been working on solving the GSIS problem at their expense.

In a press conference, GSIS Chief Legal Counsel Estrella Elamparo said Aloba imputed that GSIS was to blame for the massive system crashes, despite reporting earlier to GSIS that software bugs in the database software were the culprit.

“He made it look like GSIS was at fault but it was GSIS who wasthe victim because many of our members are relying on this system to process their transactions,” Elamparo said.

Mitigating measures

With the cases already in court, GSIS officials said they are implementing mitigating measures to prevent crashes of the DB2 software, which they continue to use.

Macasaet said that some of the electronic processes that should have been done through ILMAAAMS are now being handled manually.

They are also prioritizing certain daily transactions, such as online queries, loans and membership updates.

Macasaet also stressed that the agency might be forced to shift to different database software if problems persist. “We might fast track another project that’s not even supposed to be implemented yet just to make sure we don’t encounter these problems.”

Nevertheless, Elamparo said that is still open to discussions with the respondents to try and fix the problem. “We’re open to settle this because it’s not just us who are suffering but the GSIS members.”

Computer crash was GSIS’ fault—contractor

A technology contractor threatened with a lawsuit by the Government Service Insurance System (GSIS) for the malfunctioning of its computer database has tossed the blame back to the government pension fund.

Questronix Corp., which supplied the GSIS database software package, said the pension fund managers themselves caused their computers to crash because of poor database management and lack of standard backup measures.

Questronix said that the GSIS used the system in an “unusual” way that led to a crash twice.

Last week, GSIS officials sent Questronix a demand letter, saying the crashes caused the agency “incalculable damage” and resulted in a backlog of applications for loans, including 20,000 filings for claims mostly by newly retired members.

In a letter to the GSIS dated May 28, Questronix countered that if the pension fund had invested in disaster recovery and implemented proper backup-and-restore procedures, its members would not have been left hanging by the crash.

Questronix is the lead systems integrator for the GSIS database that brought together sub-systems from German software application vendor SAP-AG, which included software developed and licensed by IBM Corp.

GSIS claimed it was supplied with “defective software” and has threatened a series of suits against IBM, SAP-AG and Questronix.

In a statement to the Inquirer, IBM Philippines had countered that GSIS did not engage IBM in the selection, customization and implementation of its system.

IBM said its DB2 was packaged with an application that was part of a global OEM (original equipment manufacturer) arrangement between SAP and IBM. Ronnel W. Domingo - Philippine Daily Inquirer