He/she needs to accept responsibility for his/her action of not reporting the loss of the ID Card. CFAO 26-3 Identification Cards states:
LOSS, THEFT OR DAMAGE29. When a form CAFIB 20 or 22 is lost, stolen or damaged:
a. the loss, theft or damage shall be reported by the member within
24 hours of the occurrence, to the base or unit security officer;
b. Annex A shall be completed in triplicate and distributed as
indicated in the Annex;
c. the loss, theft or damage shall be investigated by the military
police if the unit security officer deems such action is
warranted;
d. if entitlement exists, a replacement I Card shall be issued; and
e. if the findings of the investigation indicate that the loss or
damage was caused or contributed to by wilfulness or negligence-
(1) in the case of members of the CF, the CO shall consider
whether the loss or damage was the result of a willful or
negligent act on the part of the cardholder. If this is
deemed to be the case, the CO may authorize an
administrative deduction of $25.00 pursuant to QR&O,
Chapter 38 to offset the cost of a replacement I Card. This
does not preclude disciplinary action by the CO, and
(2) in the case of Allied Forces personnel and their dependants,
no disciplinary or administrative action will be taken.
Accepting personal responsibility is one of the key factors in learning to become an effective leader. Small pain now may save your "friend" a great deal of pain in the future. Encourage your "friend" to report it to the MPs or Unit Security Officer, complete with all the circumstances of the loss and his/her explanation of why he/she has failed to report it to date.
Good luck.