Palace tells Smartmatic, TIM: Iron out dispute

MANILA, Philippines – On the eve of the deadline imposed by the Commission on Elections (Comelec), Malacañang appealed Thursday to the feuding partners in a consortium that bagged the P11.3-billion poll automation contract to resolve their differences. Press Secretary Cerge Remonde said the Palace views with “deep concern" the rift between contractor Smartmatic and its Filipino partner, Total Information Management (TIM). “That’s why nananawagan ang Malacañang sa parties involved na ayusin nila ang gusot na yan, short of interfering in the Commission on Elections’ internal affairs," Remonde said in an interview on dwIZ radio. [That’s why Malacañang is calling on the parties concerned to patch up their differences.] Smartmatic and TIM have until Friday to reconcile and submit relevant documents to the Comelec for the automation of the 2010 polls. Remonde said the Palace is deeply concerned over the standoff because poll automation is one of President Gloria Macapagal Arroyo’s legacy projects. "We in Malacañang are still hoping this mess will be straightened out so we can have automated, honest, orderly, peaceful and credible elections in 2010," he added. Remonde belied claims that a “powerful figure" linked to the Palace was behind a phone call that broke the deal between Smartmatic-TIM and Comelec. “Ah, 'yang bagay na 'yan intriga lang. Ini-insinuate naman nila taga-Malacañang dahil ang gusto palabasin ng kalaban ng administration ayaw nitong magkaroon ng poll automation dahil mandadaya na naman sa darating na election [That's just intrigue. The enemies of the administration are insinuating that Malacañang wants to thwart poll automation to facilitate cheating again in the coming elections]," he said. Justice Secretary Agnes Devanadera on Thursday said if Smartmatic and TIM back out of the poll automation, they could face charges for possible violation of Republic Act 9184, the “Act Providing for the Modernization, Sntandardization and Regulation of the Procurement Activities of the Government and For Other Purposes." “There is a penal provision under the Procurement Act. It’s what we follow. That’s just an academic information," she said. The two firms, if found guilty, could be permanently disqualified from transacting business with the government, she said. Aboitiz In a recent Senate hearing, the Comelec revealed that Smartmatic and TIM had tapped 2GO – an Aboitiz-owned firm engaged in freight, cargo, and express delivery – in the shipping and warehousing of the 82,200 counting machines all over the Philippines. United Opposition president and Makati mayor Jejomar Binay said allowing an Aboitiz-owned company to get involved in the poll automation process was an oversight on the part of Comelec. Binay said the Aboitiz family is a known ally of the President, putting the integrity of the 2010 elections in question. “It changes the entire scenario. We should all be seriously concerned that a business interest with close ties to Mrs. Arroyo will be in charge of shipping and warehousing… That alone would put some doubt on the integrity of the votes that would be counted," he said. Binay also called for an investigation on the reports that a Smartmatic official was seen in a huddle with “a member of a very influential clan" and “a very powerful man." GMANews.TV tried to reach Aboitiz Transport System by phone but no one was immediately available to give an official statement on Binay's allegation. Injunction Meanwhile, the Concerned Citizens Movement, a group opposed to the automation deal involving Smartmatic and TIM, threatened to file an injunction case if the government pushes through with its plan to sign a contract with the two companies. “Ang citizens group ay hindi mag-aatubili na pumunta sa Korte upang sabihin sa Korte na itong dalawa ay walang kaisahan ng interes, sa panig ng TIM at Smartmatic... upang patuloy na ma-disqualify at ma-nullify yung award na ginawa sa Smartmatic-TIM," lawyer Harry Roque said in a news conference Thursday. [We will not hesitate to bring this matter before the Supreme Court so that the bid award for Smartmatic and TIM would be disqualified and nullified.] “Hindi dapat sila pinayagan mag-bid ng Comelec dahil itong awayan nila ay nagpapatunay na wala talaga silang JV [The two companies should not have been allowed to bid because their feud proves no joint venture took place]," he added. Smartmatic went into a partnership with TIM to be able to take part in the bidding for the P11.3-billion poll automation. The contract was eventually awarded to Smartmatic, which bidded the project for P7.2 billion. The consortium, however, had apparently failed to register the incorporation of their partnership with the Securities and Exchange Commission. “Kung anuman yung agreement nila, haoshao (fake) agreement 'yun. Meron pa kasi silang hindi pinagkakasunduan," Roque said. Comelec spokesman James Jimenez questioned the timing of the CCM’s threat to file an injunction case. “Bakit ngayon lang sila lumalabas kung kailan nagkakaproblema... What’s happening apparently is that everyone is taking the opportunity to start off another witch hunt… Now is not the time. It’s not contributing to the solution to the problem," Jimenez said. In a related development, Sen. Loren Legarda said the Comelec must do everything in its power to push through with the poll automation project. “After so much effort, time and money have been spent on conducting the bidding for the project, and Comelec fails to push through with the project, people would lose confidence in the Comelec," she said. “They would also lose trust in the integrity of the 2010 elections. Voters might stay away from the polls and question the results later, resulting in violent demonstrations as what happened in Iran, and immediately after the 2004 elections. “If the Smartmatic and TIM differences cannot be reconciled, Comelec must conduct another bidding. Only if everything else fails, can Comelec resume with manual voting. But that would be a political disaster," she said. – Mark Merueñas, GMANews.TV