The news that we may have to go back to manual elections spread like wildfire last night as the local partner of Smartmatic, Total Information Management Corporation, backed out of the deal with COMELEC. According to the TIM President, they had irreconcilable differences. Varied reasons for the back out have been floated by several news articles in print/online and on TV. Some say that TIM didn’t have the necessary money to fund the activity, or that they had problems with the revenue-sharing model with Smartmatic. However, another angle that we can look at is corruption.
How many times have we heard of companies paying “homage” to government agencies or partners? Maybe TIM was forced into a situation wherein they needed to pay people that don’t actually need payment. This has been a recurring item in the news for the past decades. Just a plausible theory.
Here’s the article from Inquirer.net:
MANILA, Philippines — The Filipino partner has withdrawn from the consortium that won the bidding for next year’s computerized balloting, raising the possibility that elections will be conducted manually as before, the Commission on Elections (Comelec) announced Monday.
“We may have to go manual,” Comelec Chair Jose Melo told reporters after a 10-minute meeting with officials of Total Information Management Corp. (TIM), the local counterpart of the consortium led by the Barbados-based Smartmatic International.
Melo said that TIM president Jose Mari Antuñez told him that TIM was pulling out of the partnership with Smartmatic, citing unspecified “irreconcilable differences.”
However, a source privy to the Comelec’s automation efforts said that lack of funds and unpreparedness prompted TIM’s withdrawal.
The source, who spoke on condition of anonymity for fear of compromising his role in the initiative, said that TIM needed an additional P300 million to meet its P700-million share as a partner.
“Unless TIM can raise the amount, the joint venture cannot push through and they cannot be issued the proper papers by the Securities and Exchange Commission,” the source said.
However, the source noted that TIM could easily enter into a loan to obtain this amount “since the contract is already a sure shot, which makes us wonder what ‘irreconcilable differences’ mean.”
The Philippine Daily Inquirer contacted TIM, but the company declined comment.
The Smartmatic-TIM group was awarded the contract after a month-long bidding process that saw seven election companies compete for the P11.3-billion project.
The group made a P7.2-billion bid and won the right to lease 82,200 counting machines that would allow the Comelec to complete the canvassing of votes in two days instead of weeks under the manual system.
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Tags: Automated Elections COMELEC, Corruption Automated Elections Philippines
This is just common sense.
The government mandates a 60:40 sharing for joint ventures, or JV, (60% filipino-owned company, 40% foreign company). If Smartmatic (the foreign company) wants full control of the operations, which means TIM will have no say, then what will happen if something goes wrong during the elections?
TIM will have the proportionately greater liability, having 60% ownership of the JV as compared to Smartmatic’s 40%. And Smartmatic could even easily fly the coop, if things go awry, since it is a foreign entity.
So, as a business, and as a Filipino one at that, it is only prudent, not only for the protection of the business, but also of the country, that TIM MUST have have some form of control on the operations. The decision-making should not fall solely on Smartmatic (this is what Smartmatic wants).
Come on, if you have the greater liability and risk exposure, but you are not allowed to have control of the operations, like TIM’s case, then what would you do? Sira ulo ka na lang or may death wish ka kapag hindi ka nga umatras para protektahan sarili mo.
Oh, and money should not be an issue. Come on, regardless of what a company’s financial capability is, kahit sari-sari store pa yung bidder, the money will come to the said sari-sari store if it manages to win a bid of this magnitude. Banks and other financial institutions will eagerly line up to bankroll or finance the project. Again, common sense lang yan.
Hi John! Those are really good points. Thanks for sharing!
Hi Carlo,
I hope you won’t find this comment totally off topic as it’s government related question.
Anyway, here it goes. My friend works as an elementary public school teacher. The other day, she was really upset because her Principal scolded/shouted at her in front of her colleagues and sarcastically dismissed her petition for a lighter workload by saying that she’s not meant to be a flower vase in the school.
I’m overseas and I can’t imagine how someone holding such esteemed position can be rude and lack simple courtesy. I’m sure my friend has her own shortcomings, but the least you expect from a superior is to be treated with respect. I would like to ask her to lodge a complaint against the principal’s bullying and harrassment, but I haven’t a clue where to start.
I tried the DepEd website but my email bounces, do you think it’s appropriate to bring this to the attention of PRC? Any idea is greatly appreciated.
Thanks & Regards,
Mark
Before you look at the elections, look at the organization your are connected. There’s a lot of corruption going on there without the member’s knowing it.
i have some Q.?
how can we assure that the automated election cannot be cheated?