Comelec defends P268-M Smartmatic deal

MANILA, Philippines - Acting Commission on Elections (Comelec) chairman Arthur Lim presented before Congress the P268-million negotiated contract the Comelec signed with Smartmatic for the repair and refurbishment of 82,000 precinct count optical scan (PCOS) machines.

In a hearing of the Joint Congressional Oversight Committee (JCOC) on the Automated Election System, Lim said there were several factors that led to the decision to forgo with a public bidding for the services needed for the PCOS machines and to enter into a negotiated contract with Smartmatic.

Lim said Comelec found the risks of contracting a third party provider other than Smartmatic to undertake the repair of PCOS would be too great.

He said there was a determination that allowing a third party service provider to tinker with the PCOS machines would pose a great risk of reverse engineering taking place.

Lim pointed out an existing copyright and patent for the PCOS machines, which he said must be protected.

If anyone other than Smartmatic or the Comelec itself would undertake the repairs on the PCOS, Lim said that some copyright or patent infringement violations could arise, especially if a competitor would be contracted for the service.

Sixto Brillantes, who retired last Monday as Comelec chair, argued the poll body’s deal with Smartmatic saved the government at least P60 million.

Brillantes explained the original proposal of Smartmatic was for P300 million for the diagnostic services and minor repairs of the PCOS.

The original proposal also involved a second phase for the repairs and replacement of spare parts or the machines itself at a cost of P900 million.

After negotiations with Smartmatic, Brillantes said they were able to get the figure down to P240 million, which went up to a total of P268 million after taxes.

Brillantes said the new contract with Smartmatic expanded the coverage of services to be provided to include major repairs and even a replacement of the PCOS machines if necessary.

“So P240 (million) is not really that high because of the expanded coverage which we negotiated,” he said.

“My analysis now of this new contract which we negotiated with Smartmatic is such that now with the P240 we might be able to dispense even with the next stage of P900 million.”

Sen. Aquilino Pimentel III, chairman of the JCOC, said the contract, as explained by the Comelec, appeared to be beneficial to the government because the cost was lower than what was originally proposed and the Comelec got more than it was supposed to get.

As far as the legal issues regarding the decision to go into a negotiated contract were concerned, Pimentel said this would be up to the Supreme Court to decide.

Cesar Flores, president of Smartmatic Asia-Pacific, noted the company submitted the lowest proposal to the Comelec.

Flores said it was only proper that the government spend money for the maintenance and repairs of the PCOS machines since it spent a sizable amount to purchase these.

Replacements

Malacañang is reportedly considering two senior congressmen for the post vacated by Brillantes as chairman of the Comelec.

A source in the House of Representatives identified them as Cagayan de Oro Rep. Rufus Rodriguez and Rep. Rodolfo Fariñas of Ilocos Norte.

A lawmaker said a Malacañang official informed him that the names of his two colleagues are included in the list of possible appointees being vetted for the Comelec chairmanship.

House colleagues of Rodriguez and Fariñas said the two are highly qualified for the top Comelec job, since “they are both good lawyers.” 

Brillantes and two Comelec commissioners retired last Tuesday, along with the chairpersons of the Commission on Audit and Civil Service Commission.

Rodriguez chairs the House of Representatives special committee on the proposed Bangsamoro Basic Law. He is a former dean of law of San Sebastian College. – With Jess Diaz