Smartmatic hiring weak automation trainers

Does Comelec know? Smartmatic, the poll automation main supplier, has been hiring undersized companies to train operators and to warehouse its counting machines.

The outfits that Venezuelan-owned, Barbados-based Smartmatic is subcontracting are experienced. But their capitals, past-year revenues, and manpower are puny, compared to the hundred-million-peso deals being handed out. This imperils the utility and security of the 82,200 precinct count optical scanners for which Comelec is paying Smartmatic P7.2 billion.

As of Jan., Smartmatic has tapped three manning and four logistics firms. All have assets less than P20 million, but their subcontracts reach as high as P240 million. Three notched past-year revenues of less than P2 million, two around P20 million, and one at P45 million. Two have only one employee each on record, and three have only 7 to 12. The criteria that Smartmatic used to recruit the companies were unknown.

Smartmatic is supposed to be the 40-percent foreign minority partner in the automation venture. Total Information Management is the 60-percent Filipino partner, as required by law. But in SEC papers of their holding firm 1920 Business Inc., Smartmatic had paid up 90 percent of their P678-million stock, and TIM only 10 percent. Smartmatic chief finance officer Armando Yanes, a Venezuelan newcomer to the Philippines, runs operations. TIM, a computer system provider of major local banks, contributes only 10 percent of the work, founder Jose Mari Antunez has admitted to senators.

Field sources say that Yanes hired Ventureslink International for P149.4 million to train PCOS operators in Central Luzon, Western and Central Visayas, and Caraga Region. For a separate P33.3 million the manning firm is to cover Eastern Visayas. From SEC records, Ventureslink has assets of P18.8 million, liabilities of P5.3 million, revenues of P45.4 million in 2008 and P60.3 million in 2007 — and only 12 employees.

Placewell International Services has only one employee on record. Yanes gave it P128.7 million to train PCOS machinists in Southern Tagalog mainland and islands, Bicol, and Cordillera Autonomous Region. For another P63.5 million Placewell is to cover Metro Manila. The subcontractor has assets of 4.2 million and liabilities of P621,000. It earned P1.65 million in 2008 and P880,000 in 2007 — way below its automation subcontracts.

Manila Resource Development Corp. is to train operators in Ilocos and five Mindanao regions, including the Muslim Autonomous Zone, for P139.4 million. It has only 25 employees. P2.8 million assets, P137,000 liabilities, P1.9 million revenues in 2008 and P1.6 million in 2007. Manred is to handle Cagayan Valley for a separate P20.2 million.

Recruitment and training has started — most haphazardly, sources say. In some regions trainees already have been fully paid two weeks, and told to return for Election Day duty. But there’s no compulsion for them to show up for one day’s pay. In case they absent, the PCOS units cannot be used to count votes and transmit tallies. Even if Smartmatic’s machines prove to be the best in the world, the automated election may fail from truancy.

Comelec perhaps must look over Smartmatic’s shoulder and check how it’s running the country’s first fully automated balloting.

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Filipinos delude themselves in the notion that English competency is their built-in advantage in business process outsourcing (BPO). English is claimed to be the second tongue, so doing business with Westerners supposedly comes easy. And such ease allegedly makes the country competitive in the global arena.

But educational statistics belie this. The National Achievement Test administered in public schools had a mean score of 66.33 percent in 2009. While this is a big leap in all subjects from the 2006 mean of 54.66 percent, Filipinos shouldn’t be jumping for joy. To be sure, 66.33 is rather low. By world standards, it is only “near mastery level,” or in plain terms below par.

Filipinos should in fact be alarmed. For, mastery was only 14.4 percent among Grade 6 students, and 1.1 percent among high school seniors. Meaning. 85 students in Grade 6 and 99 in 4th Year have not learned their subjects.

What could be the reason for such “below-mastery levels”? In a 2007 talk Dr. Yolanda Quijano, Bureau of Elementary Education chief, pointed to “reading problems.” Meaning, a new generation is growing up poor in reading, so they will also likely be poor in writing and speaking. Meaning, too, that there goes the supposed competitive edge in BPO.

Obviously, the solution is better student training in reading. This would require not only closer supervision by teachers, but also access to a wide range of quality books. A habit must be developed among the youth to read for pleasure.

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On the 120th birth anniversary of Don Antonio de las Alas is a book launching and exhibit about his life and times. Called “A Small Man with a Tall Shadow,” the event is Thursday, Feb. 11, 6-8 p.m., at the Philippine Columbian, Plaza Dilao, Quirino Avenue, Paco, Manila. Taipan Alfonso Yuchengco hosts for de las Alas’s daughters Ching Montinola and Menchu Concepcion.

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 “There is little room for wisdom in the world because human stupidities have occupied most of its space.” Shafts of Light, Fr. Guido Arguelles, SJ

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