THE Commission on Elections (Comelec) on Monday signed an P18 billion contract with South Korean firm Miru Systems to lease 110,000 automated counting machines (ACMs) for the 2025 midterm polls despite a pending court case filed by Smartmatic Philippines Inc. questioning its disqualification from all election-related bids and procurement.

Comelec Chairman George Erwin Garcia said in the absence of a court ruling, the commission will stick to its timetable, even as he said the poll body would abide by the decision of the Supreme Court, where the Smartmatic case is pending.

IT'S A DEAL Commission on Elections Chairman Erwin Garcia (second from left), Miru Systems President Jinbok Chung, Commissioner Rey Bulay and Miru's Valerie Ann Manahan hold copies of the signed contract on Monday, March 11, 2024. Photo by Rene H. Dilan

"Until now, at this hour, we [have] received no temporary restraining order (TRO) stopping the Comelec from what it is doing [in relation to the issue of ACMs]. Maybe the honorable Supreme Court has recognized that the Comelec has very little time left [in its ongoing preparations for the 2025 midterm elections]," Garcia said.

Garcia also said they have nothing to fear because everything that the Comelec did was aboveboard and in compliance with existing laws, including the Government Procurement Reform Act.

He said a restraining order from the Supreme Court would not stop the Comelec from automating the 2025 national and local elections.

"We have to automate the national and local elections whatever the disposition of the Supreme Court because we cannot resort to manual election. Otherwise, the Comelec will be in violation of the law," he said. "We can only resort to automated election in 2025 because that is what the law provides."

In November 2023, the Comelec en banc issued an order disqualifying Smartmatic Philippines from participating in all of its bids and election-related procurement.

The decision cited a questionable procurement from Smartmatic during the 2016 elections when the Comelec was headed by Juan Andres Bautista.

"It is noteworthy that Bautista, who served as the chairman of the commission, was formally charged in September 2023, in connection with allegations of receiving bribes in exchange for awarding a contract for election machines to Smartmatic Corp.," the 17-page en banc resolution read.

It added: "Bautista and others are alleged to have laundered the bribe money through multiple entities. It was revealed that Bautsita established a foreign shell company, which was used to receive bribe payments from Smartmatic. The charges against Smartmatic and former chairman Bautista are of public knowledge and tend to cause speculation and distrust of the electoral process."

"Given the gravity of allegations related to bribery and compromised procurement processes, as independently determined by foreign bodies, the commission recognizes the imminent threat to the strength and integrity of our democratic processes. In the light of these findings, the commission acknowledges the imminent peril to the integrity and robustness of our democratic institutions," it added.

Smartmatic denied the allegations against it, saying they were based on news reports and unofficial leaked documents from abroad that have yet to be verified.

"It is foundational to any legal system, here in the Philippines or anywhere in the world, that investigations or indictments do not automatically amount to guilt, nor [do they] affirm one's innocence. That's what legal proceedings are for," Smartmatic said.

"Pending the definitive conclusion of an investigation, punishing Smartmatic will not only be premature but inconsistent with Philippine law, including its procurement laws,"| it said.

"Smartmatic is a trusted technology provider in the Philippines that has worked with Comelec since 2008. Over the years, all legal suits and election protests had all been dismissed. And recounts conducted since the first national automated election in 2010 have affirmed the reliability of its count, down to the last vote. In the 2022 elections, the system provided to Comelec enjoyed an unparalleled 82 percent trust rating from the public," the statement read.

Smartmatic had won all the biddings of the Comelec since 2010 when it first bagged the election automation project.

During the 2010 bidding for the election automation project, Smartmatic and six other bidders were all initially disqualified by the Comelec-Special Bids and Awards Committee (SBAC)

All seven bidders filed motions for reconsideration, but only Smartmatic passed the SBAC's eligibility, technical and financial requirements.

In 2015, Smartmatic was also disqualified by the SBAC in the P2.503 billion contract for the supply and lease of 23,000 units of precinct-based optical mark reader (OMR) counting machines for failure to submit valid articles of incorporation and for failure of its demo unit to meet the system requirement.

The SBAC decision was reversed by the Comelec en banc, however.