Mega Pacific files P222-M suit vs Comelec officials

Mega Pacific eSolutions Inc. (MPEI) has filed a P222 million damage suit against the Commission on Elections after its contract to supply the Comelec with automated counting machines (ACMs) for the May elections fell through.

In a 17-page complaint filed before the Makati City court, MPEI asked the poll body to pay P200,165,681.89 for actual damages, P10 million for moral damages, P10 million for exemplary damages and P2 million for attorney’s fees and the cost of the suit.

Lawyers Alfredo Lazaro Jr. and Juanito Velasco Jr. of the Lazaro Law firm filed the suit on behalf of MPEI president Willy Yu.

The lawyers said the company followed the Comelec’s bidding procedure and complied with all its specifications. The ACMs, they added, were even used for the poll body’s trainings, seminars and demonstrations.

It was the Comelec which did not comply with the bidding rules, the lawyers charged.

"Such negligence and erroneous exercise of discretion subjected MPEI to assume such gargantuan, nay onerous tasks/endeavors only to be repudiated, humiliated and worse, unduly burdened to shoulder tremendous financial losses threatening the very viability/existence of the corporation. Glaringly, there is nothing in the Supreme Court decision, which even remotely suggests attributing such error, fault or negligence on the part of MPEI," the complaint read.

Reached by The STAR for comment yesterday, Comelec Chairman Benjamin Abalos said he was still unaware of the damage suit filed by the consortium but confirmed that MPEI is indeed demanding the balance of the full amount of the contract.

MPEI was awarded the contract to supply the poll body with ACMs, database servers, uninterrupted power supply and the software for electoral management and canvassing of votes on April 15 last year for its use in the May 10 elections, but the Supreme Court voided the deal last January, citing massive irregularities in the contract.

The high tribunal also ordered the Comelec to get back the advance payment made to the consortium and to return the machines.

Based on the SC’s computation, around P850 million has been paid by the government to MPEI but the Office of the Solicitor General (OSG) recomputed the amount and said the total amount paid reached P1.03 billion.

Abalos said that a letter has been sent to MPEI informing them to get the machines back in accordance with the SC’s ruling.

"I told them that I hope they will be guided by the Supreme Court decision," said Abalos. However, he said, the MPEI has yet to respond to the request.

"It seems to me that they will not take back the machines," Abalos told The STAR.

Lazaro already hinted in an interview Tuesday that the government is in for a major court battle.

"It is not that we just got the money. We worked for it," Lazaro said.

He added that the 1,991 machines fully delivered to the Comelec are no longer considered new after being exposed to harsh tests by Comelec technicians.

"Not only that. The machines are tailor-fit for Comelec’s use. Who is going to buy that?" he stressed.

To facilitate the resolution of the case, Malacañang has exhorted the Comelec yesterday to return the ACMs and for MPEI to refund the P1.03 billion it received for the botched deal.

In an official statement she issued at the Palace yesterday, President Arroyo said that the P1.03 billion paid to MPEI cannot be considered lost even after the SC decision nullified the contract.

"We assure the people that this is not money down the drain," Mrs. Arroyo said. "We will fight with all lawful means to recover it and protect the public interest."

Meanwhile, the OSG said yesterday that if MPEI does not want to return the money the government paid in the aborted deal, then it would also file a civil case against the consortium.

Solicitor General Alfredo Benipayo said the SC has given the OSG the authority to run after the MPEI officials when the tribunal nullified the anomalous contract.

"The SC nullified the contract and ordered that the government be reimbursed. We will file a civil action if they do not pay. It’s that simple," Benipayo said.

He added that the OSG already submitted documentary evidence that would help the Ombudsman in filing criminal charges against MPEI and Comelec officials. — With Jose Aravilla, Marichu Villanueva, Aurea Calica