Poll automation on

MANILA, Philippines – “We are back with automation.”

The dispute between Netherlands-based Smartmatic and its Filipino partner Total Information Management (TIM) ended yesterday, putting back on track the automation of the 2010 elections.

Commission on Elections (Comelec) Chairman Jose Melo announced that Smartmatic and TIM were able to iron out their differences over the control of funds for the P11.2-billion poll automation project.

“We were able to thresh out everything. Everything seems to be on track again after one week of suspense and apprehension that we will be reverting to the manual system. We are back with automation,” Melo declared in a news briefing after a three-hour closed-door meeting.

Melo said the consortium partners have agreed to submit the required incorporation papers for their joint venture to the Securities and Exchange Commission (SEC) on Monday.

Melo gave assurance that when SEC approves the incorporation next week, the P7.2-billion automation contract would be signed tentatively on Friday.

Melo refused to give details of the meeting but repeatedly said the automation of next year’s elections would definitely push through.

“It’s up to them (how they will settle things) but we are contracting them. Whatever internal arrangements they have, that’s between them,” he maintained.

Comelec Commissioner Armando Velasco said Smartmatic and TIM have differed on three issues – “control, disbursement and liability.”

Velasco explained the two firms have had some internal arrangements regarding the issues of “control and disbursement.”

Last Monday, TIM president Jose Mari Antuñez had informed Melo that they are pulling out from the joint venture with Smartmatic because of “irreconcilable differences” and “loss of trust.”

Comelec gave the two firms until yesterday to patch up their differences, warning they could jeopardize the automation project.

It turned out, however, that the two companies disagreed over the “control of money.”

Commitment

In a joint statement, Smartmatic and TIM have given assurances of their “commitment and full dedication to this (automation) landmark initiative for the Philippines.

“Both companies, fully aware that above all private concern lies the desire of the Filipino people for automated elections, maintain the agreements reached in April this year, and gladly announce to Comelec our continuation with the full automation of the elections in May 2010,” they added.

Both firms claimed they found a “clearer understanding of the roles and responsibilities of the partners in the project” under the “prompt guidance of Comelec.”

“TIM acknowledges that the agreements were always fully compliant with Comelec’s requirements and provide the right structure to guarantee the success of the project… under the aegis of this Joint Venture Corporation, we shall move on as one,” they announced.

In case Smartmatic and TIM again have disagreement, Melo said they “will be held severally and jointly” liable when the contract has already been signed.

“We will have control over the whole operation. We will have a project management team and this will be the one to give directions and orders. It is not them that will run everything,” Melo said.

Melo also downplayed the threat of lawyer Harry Roque to seek an injunction from the Supreme Court to stop the signing of the automation contract. Roque had pointed out Comelec had allowed the two firms to join the bidding without a binding joint venture agreement.

“I think Attorney Roque did not check his facts well,” Melo said.

Melo explained that at the time the bid was made, there was already a joint venture agreement between the two firms, though he noted they were not yet incorporated.

“When you incorporate, you have to spend a lot of money. What if you do not win the bidding? What happens to your investment?” he said.

Relief

Malacañang, for its part, welcomed the announcement with “a big sigh of relief.”

“We heave a big sigh of relief and congratulate the Comelec, Smartmatic and TIM for hurdling hopefully the last major obstacle to the full automation of next year’s polls,” Presidential Adviser for Political Affairs Gabriel Claudio said.

Claudio earlier warned the winning bidder that the government would pursue all the legal remedies against them if they fail to comply with their part of the deal with the Comelec to automate the 2010 elections.

Malacañang said reverting to manual elections would be unacceptable, since the law on poll automation had been enacted.

“Under the Constitution, no one, except the Supreme Court, can question the moves of the Comelec to foster clean elections next year. After this, the success of the elections will be in the hands of the people,” Press Secretary Cerge Remonde said.

Sen. Richard Gordon, author of Republic Act 9369 or the Poll Automation Law, was pleased over the reconciliation.

Gordon said that TIM was “insecured” because as the Filipino partner, it would be held more liable than Smartmatic, although the latter has bigger exposure in the project.

“The foreign partner must be more responsible. In truth there is no need for a Filipino partner because the technology is with the foreign partner. Doon sila nagkagulo. Since the exposure of the foreign partner is bigger, the brunt... must be on the foreign partner to protect the Filipino partner,” he said.

The Catholic Bishops’ Conference of the Philippines (CBCP) also hailed the effort of Comelec to allow the two firms to settle their differences for the automated elections to push through.

“We are happy with the development,” CBCP spokesman Monsignor Pedro Quitorio III said.

Despite the temporary setback, Quitorio said the two firms should now catch up on their preparations for automated elections by May 2010.

“How we wish that, with the very little time left, those concerned will now start working double time for a clean and honest election which is what everybody is expecting with full automation,” he said.

Earlier in the day, lawmakers led by Senate President Juan Ponce Enrile said Comelec could actually do away with TIM while Senators Gordon and Pia Cayetano made proposals to salvage the situation.

“It’s better to have a manual election than nothing. Whatever may be the opinion of others, I’d rather have a manual election compared to no election or failure of election or a revolution because that will be the net result if we have no election,” Enrile said.

Enrile admitted he was not very familiar with the law on procurement but said Comelec might not actually need to require a Filipino partner for the winning bidder since elections are not a public service.

“It’s not a public utility operations which requires a 60:40 ratio of share ownership of the winning bidder,” he said. 

Tainted process

Agusan del Sur Rep. Rodolfo Plaza, on the other hand, warned that even if Smartmatic and TIM have already ironed out their differences, the election process has already been tainted.

Plaza said there would be fears and apprehensions if the yet untested counting machines would really insure a clean and honest election.

He said the infighting between Smartmatic and TIM is a clear signal that more problems of the automated election are expected to arise in the next few months.

Plaza pointed out the technology that would be used in the 2010 polls was similarly utilized in the recent Autonomous Region in Muslim Mindanao (ARMM) elections that had churned up zero transmission report of the 200 ballots counted in a polling precinct.

He said any computer breakdown during the election would be perceived by candidates and their supporters as an attempt to rig the results and could create tension at the local level.

“The automated election is now a national security concern as it may create chaos and confusion during elections,” he said.

Comelec spokesman James Jimenez, however, said the problem was already addressed by contingency measures drawn up by the poll body.

Jimenez explained to Plaza that the computers that were used in the ARMM elections which yielded zero transmission report were programmed to count only 200 voters and the names of the three boards of inspectors were included.

“We have already contingency measures in place,” Jimenez said. – With Paolo Romero, Marvin Sy, Aurea Calica, Evelyn Macairan, Perseus Echeminada