Comelec: It's all systems go for 2010 poll automation

MANILA, Philippines - The dispute has ended. Smartmatic and its Filipino partner, Total Information Management (TIM), were able to iron out their differences over the control of funds for the P11.3-billion poll automation project after a three-hour meeting Friday. "It's a go for poll automation. Smartmatic and TIM are right now signing their joint venture incorporation papers," Commission on Elections (Comelec) Chairman Jose Melo told reporters. By next Friday, July 10, after submitting their incorporation papers to the Securities and Exchange Commission, the companies are expected to sign the P7.2-billion contract with the Comelec, according to Melo. The poll chairman said that as a joint venture entity, Smartmatic and TIM "will be held liable severally and jointly" if they fail to provide services in accordance with the contract. The poll automation project was jeopardized earlier in the week after TIM president Jose Mari Antunez said his company would pull out of its partnership with the Barbados-based Smartmatic due to disagreements over how the money for the automation project would be controlled. The Comelec gave the two firms until Friday, July 3, to settle their differences. "After one week of suspense and apprehension that we may be reverting to the manual system of election, we are now back to automation. We thank Smartmatic, TIM and the people behind those companies, as well as our supporters from Congress," Melo said.
In a joint press statement, Smartmatic and TIM reiterated their commitment to the automation project, but did not reveal how the dispute was settled. “Both companies, fully aware that above all private concerns lies the desire of the Filipino people to expedite 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," according to the statement handed out by Cesar Flores, Smartmatic’s international sales director. “We honor the commitment given to Comelec to continue with the project, for the benefit of the Philippines. We are already working with the majority of the Filipino people in their quest for automated elections and, together we will make this a successful project," it added. Gag order Flores told reporters the disagreements “are internal things that should really not be discussed. (Besides), the differences were all ironed out." Melo would not elaborate on the settlement either, saying only that Antunez “allowed the greater interest of the public to prevail. “Ang sabi namin sa kanila, sila na ang bahalang mag-agree (We told them to agree among themselves)," said Melo. Commissioner Nicodemo Ferrer told GMANews.TV that to avoid further conflict between Smartmatic and TIM, the Comelec decided to impose a “gag order" on the details of the contentious issues that the two firms discussed during their meeting at Melo’s office. Among the contentious issues taken up were disbursement, liability, and operational control, said Commissioner Armando Velasco. He refused to provide details about the issues. Sources at the Comelec told GMANews.TV that the companies argued on whether only one firm or both companies should sign checks for disbursement. Sources said the two also discussed with Comelec whether Smartmatic and TIM as separate companies, or only the joint venture, should be held liable for the poll automation services. Antunez did not reveal details of their discussions, saying, “Kung sa mag-asawa e nagtampuhan, tapos na e. Pag babalik-balikan natin e mahirap 'yun. Nagkaayusan na kami… Pag nagkaayos na kayo ilibing na then you move forward." (Just like when a couple had an argument and they were able to settle it, they should no longer dwell on it or it will be difficult for them. We already reached an agreement … when you have already resolved the issue, you should bury it then move forward.) Antunez denied reports that he is close to personalities from the administration or the opposition. “Hindi tutuo yan, wala. We are apolitical, wala kaming relasyon sa politiko o kahit saan (That is not true. We are apolitical, we have no relation with any politician)," he said. He also denied a newspaper report that he asked in jest for P500 million from Smartmatic for his continued cooperation to the partnership. Aboitiz involvement 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. In a statement sent to news agencies, however, 2GO said: "The extent of the Aboitiz Group’s involvement in the Comelec’s Automation Project, including its relationship with Smartmatic/TIM, is solely that of a cargo delivery contractor." The statement added: "Contrary to reports, there is no relationship by blood or marriage between the Aboitiz family and the family of Jose Mari Antunez, President of TIM." - with reports from AMITA LEGASPI and JOHANNA CAMILLE SISANTE - GMANews.TV