The dispute between the designer of the electronic border clearance system and its subcontractor will not paralyze the e-channel system on July 1.

In 2004, the Immigration Department had awarded a contract to ATAL Technologies Ltd to design an automatic clearance system popularly known as e-channel.

Subsequently, ATAL subcontracted the automated vehicle recognition system, which was part of the main system, to Stratech Systems Ltd (SSL), a Singaporean firm.

Only about six months ago did ATAL come to know that SSL had installed a "time lock" that would be activated on July 1, 2006. The SSL had installed the system without the knowledge of ATAL, the latter said.

Since SSL had refused to remove the time lock despite numerous requests, ATAL had terminated the subcontract in March 2006 and installed a completely new system to replace the one supplied by SSL.

Aggrieved, SSL filed a writ to the court against ATAL for unlawful termination of the contract and further warned that the system would be disabled on July 1.

Contingency plans

Meanwhile, refusing to be dragged into the controversy involving the two firms, the SAR government has mapped out contingency plans in case the system fails.

The Immigration Department will deploy 50 additional staff at various border control points, David Chiu, Assistant Director of Immigration, announced yesterday.

It will also start the joint commander post at Lok Ma Chau from 11 pm of June 30 to co-ordinate various departments in case of emergencies.

"Our colleagues from the IT section will also be posted overnight at various control points to ensure the system functions properly. "Even if there is any small problem, we can instantly switch to the traditional counter services. I have very great confidence to assure you all that the system will not be paralyzed," he told a press conference.

ATAL managing director Otto Poon disclosed that the systems supplied by SSL involved only vehicle clearance system but not the document check system.

They had already removed the time lock and replaced it with a better system at their own cost about two months ago.

Calling the time lock as a breach of contract and unethical act, he said ATAL would sue SSL because the incident had brought about negative impacts on ATAL.

"Our contract with the Immigration Department said ownership and intellectual property right of the systems would be transferred to the government on delivery of the systems," he said.

"Our subcontract with SSL is on 'back-to-back' basis and is bound by our contract with the government. In fact, we have paid SSL more than what it has done so far," Poon said.

(HK Edition 06/30/2006 page2)