Bad. Smartmatic overpriced its vote counting machines in Election 2016: $60 x 70,977 VCMs = $4,258,620. Next it bribed then-Comelec chairman Andres Bautista $1 million, a US indictment states.
Worse. Comelec paid Smartmatic P6.286 billion for the VCMs, including P700-million VAT. Yet the deal was tax free. Thus, Comelec lost nearly a billion, present chairman George Garcia says.
Worst. We Filipinos likely won’t get our money back. Fast but faulty electronic counts fool 83 percent of us. We even sell our votes.
Principals indicted for bribery in Florida on Aug. 8, 2024:
(1) Juan Andres Donato Bautista, chairman, April 2015-October 2017
(Note: Exposed by his wife for illegal wealth, Bautista escaped to the US in November 2017 due to “political persecution.” He has evaded Philippine congressional and judicial subpoenas.)
(2) Roger Alejandro Pinate Martinez, Smartmatic co-founder-president
(Note: Ex-congressman Glenn Chong exposed Venezuelan Pinate and Liza Araneta-Marcos’ Manila meeting just before Election 2022. The 2008 Automated Election Systems Law forbids talks between AES contractors and candidates or reps. Chong executed a deposition in the US separate from the Florida case. No word from Mrs. Marcos.)
(3) Elie Moreno, Smartmatic VP-Global Services Unit
(Note: During the 2016 vote count, Moreno made Smartmatic tech head Marlon Garcia edit the Transparency Server. AES Law bars altering of servers once counting begins. Charged in Manila, Marlon admitted that Smartmatic illegally had more servers than three official ones, Bongbong Marcos’ Facebook says. Venezuelan-Israeli Moreno fled.)
(4) Jorge Miguel Vasquez, Smartmatic VP-External Operations
(Note: The Florida case states that US citizen Vasquez is stockholder, officer, employee, agent of Smartmatic shell companies, which deposited kickbacks to Bautista’s fronts Baumann Ltd.-British Virgin Islands and Philippine Metals Co.)
Charges, penalties:
• One count of Conspiracy to Violate the US Foreign Corrupt Practices Act and one count of Substantive Violation of FCPA. Maximum of five years in prison.
• One count of Conspiracy to Commit Money Laundering and three counts of International Laundering of Monetary Instruments. Twenty years in prison for each count.
Purpose of conspiracy:
“Pinate, Vasquez, Moreno and co-conspirators created slush funds to bribe Bautista by over-invoicing the cost … additional $50 and $10 per VCM.
“[They] transferred slush funds to, through and from bank accounts and companies … in Hong Kong, Singapore, Philippines, Switzerland, New York and Florida.
“To disguise the slush funds [they] described the $50 as ‘boss’ fund,’ ‘rush fee’ or ‘extra fee’ and the $10 as ‘RUE’.”
Narration of facts (excerpted):
• May 16, 2015 - Pinate texted Vasquez in Spanish on WhatsApp, “Screwed here in Philippines. They want to eliminate us. I’m fighting it to the death.” Then, “[Comelec] Bids-Awards Committee has two out of five members bought by [competitor].”
• March 31, 2016 – Vasquez emailed Taiwanese fabricator of VCMs for Smartmatic: “Since other fees are involved that [your employee] shouldn’t know, let’s discuss among us first using those email addresses. Then you can notify [employee] of final cost, without mentioning other fees.”
• Apr 12-July 21, 2016 – Emails between Pinate and Vasquez to introduce Venezuelan-Portuguese associate who owns offshore companies and accounts, and identify depositories.
• May 19, 2016 – Moreno emailed Pinate a $1.35-million sham contract with payment schedules to Philippine Metals.
• June 2, 2016 – Vasquez directed Taiwanese to deposit $350,000 to Philippine Metals for fictitious purchase of iron and copper.
• July 29, 2016 – Moreno wrote Bautista “to release outstanding collectible P3.3 billion, including 12-percent VAT.”
• Aug. 3- 10, 2016 – Texts and emails between Vasquez and Pinate on payment schedule for another sham contract.
• Aug. 10, 2016 – Pinate texted Vasquez: “We’re close to collecting … much more than what was hoped for – through a ‘tax strategy’.”
• Aug. 11-Oct. 7, 2016 – Texts and emails among Pinate, Vasquez, Moreno, Venezuelan-Portuguese on three deposits, $500,000 each, from Taiwanese through New York intermediary to Baumann’s Singapore account 2411.
• Oct. 17-Dec. 6, 2016 – Emails between Vasquez and Taiwanese about “complications.” Baumann’s Singapore bank had doubted Bautista’s claim of legitimate loans and returned $1 million to New York intermediary. Under new sham contract from Moreno, payment “to calm down recipient” shall be made to Philippine Metals.
• Dec. 7, 2016 – Vasquez confirmed to Pinate and Moreno $297,500 payment to Philippine Metals Manila account 0419.
• Jan. 3, 2017 – Employee of unknown attorney confirmed Philippine Metals receipt from shell company of $262,700.
• Feb. 9, 2017 – Vasquez confirmed to Pinate and Moreno $268,772 payment to Philippine Metals Manila account 0419.
• Feb. 16, 2017 – Pinate, Vasquez, Moreno told Taiwanese to deposit $71,000 to Philippine Metals.
• Aug. 10, 2017-Feb. 19, 2018 – Vasquez and attorney’s employee exchanged account reconciliations on Excel files.
Garcia discovered the P700-million overpayment to Smartmatic on Page 13, Items 11-15 of the indictment.
“All contracts under AES Law are tax-exempt,” he told ABS-CBN News Channel’s Karen Davila, Monday, Aug. 12.
“The P700 million should’ve been returned to the government … savings of Comelec.” He has formed an 11-man investigation panel.
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