Comelec: Smartmatic, TIM likely to reconcile

MANILA, Philippines - The prospects of automated elections in 2010 brightened Friday with Commission on Elections chairman Jose Melo’s claim that the partners in a consortium that bagged the P11.3-billion poll automation contract might iron out their dispute. Melo said in an early morning radio interview that there are signs Smartmatic and its Filipino partner, Total Information Management (TIM), would set aside their differences. "It’s getting brighter, a little," Melo said in an interview on dzXL radio, but did not elaborate on the matter. His claim came hours before the Comelec’s noon deadline for Smartmatic and TIM to turn in required documents that would finally firm up the automation contract. Earlier this week, hopes for automated elections dimmed after Smartmatic and TIM admitted having a disagreement. Melo said the feud stemmed from a dispute on who would control the funds. Melo said that should Smartmatic and TIM formally reconcile, there would be no need for Comelec to replace TIM as Smartmatic’s partner. The Comelec advisory council had suggested that the Comelec take over TIM’s role and partner with Smartmatic to ensure automated polls. "It’s (takeover) a little complicated from the legal point of view. Mas maigi na magkasundo na sila at tuluy-tuloy na [It may not be needed after all. It would be better for Smartmatic and TIM to reconcile and move on to automate the 2010 elections]," Melo said. But despite the promising development, Melo maintained the government will not immediately release the P11.3 billion to the contractors. "Kailangan mag-deliver muna sila [They have to deliver first]," he said. Melo also downplayed claims that an influential personality had caused the rift between the two firms. He likewise contested claims by civil society groups that threatened to take Smartmatic and TIM to court for not forming their consortium before joining the bidding. Melo clarified that the Comelec did not require bidders to form joint ventures as it would be a big a risk for them - a company needed to raise more than P1 billion in capital. "The cost of money is much. Manghiram ka. Ang laki ng ginastos mo tapos matalo ka sa bidding. Anong gagawin mo pag ganoon? Ang laki ng mawawala. So pag nanalo, saka palang mag-form ng company [The risk is too great. That is why bidders would rather form a joint-venture company upon winning in the bidding]," he said.- GMANews.TV