That part boggled my mind. He had someone who could prove he was not who they were looking for. How the hell can the system just go ahead and charge you for something even though there is perfect evidence stating you are not who they are looking for!?
Where exactly is the failure? It identified a person who looks similar to the person in the drivers license? It could even actually be the same person, given that the drivers license is assumed to be fake (so the fake could use the photograph of the suspect).
Blaming the technology excuses these awful, incompetent police who will just screw up in a low tech way.
Once the computer flagged a suspect a basic investigation should have ruled out or confirmed the suspect.