Ex-solon asks SC to void Comelec-Miru deal after partner's exit
MANILA, Philippines — Former Caloocan Rep. Edgar Erice filed a supplemental petition with the Supreme Court on Thursday, November 14, seeking to invalidate the contract between the Commission on Elections (Comelec) and its joint venture with South Korean firm Miru Systems for the 2025 Elections, following the withdrawal of its local partner.
This supplements his April petition challenging the agreement with Miru Systems as the new election service provider replacing previous supplier Smartmatic Inc.
The latest petition addresses the withdrawal of Miru's local financier, St. Timothy Construction Corp., from the joint venture.
Erice contends this withdrawal compromises election funding as it renders the joint venture non-compliant with net financial contracting capacity (NFCC) requirements.
The NFCC, along with credit line and cash deposit hold-out certificates, demonstrates a bidder's liquidity and financial capability to fulfill contract obligations.
While Miru submitted a replacement NFCC of P19.2 billion to cover the P17.9 billion contract, Erice argues this submission cannot "cure" the deficiency as there is no longer "an NFCC legally existing with the bids and awards committee."
Erice also questions whether the joint venture maintains the required 60% Filipino ownership. "The Joint Venture Agreement provides that Miru's share is 40% while 60% will be shared by the Filipino partners," his statement noted.
Comelec Chairman George Garcia previously dismissed concerns about St. Timothy's withdrawal, stating that three partners in the joint venture manage the credit line.
"Wala itong epekto sa atin sapagkat sa tatlong Filipino partners ng Miru Systems, ang St. Timothy Construction Corporation ang in charge sa credit line. 'Yung tinatawag na garantiya na kung saka-sakaling may pang-finance sila sa pangangailangan," Garcia said in an October 4 DZBB interview.
Garcia announced St. Timothy's withdrawal on October 3, citing its owners' pursuit of local and national positions.
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