Smartmatic-TIM & Comelec

Okey, it's not about money. Neither is it about control. So what was the cause of the previous misunderstanding between Smartmatic and Total Information Management (TIM)? And who interceded to make this a done deal?

Sources from both companies said the issue is actually control AND liability. TIM CEO and president Jose Mari Antunez's concern is the possibility of them being hauled to court in case something breaks down or the entire project is sabotaged. Both firms resolved that by convincing the COMELEC to amend the terms of reference. The terms of reference initially stated that either Smartmatic or TIM would be held severally liable for this. Now, the term was changed into "only the joint venture company would be held liable." Meaning, the government cannot go after TIM or Smartmatic singly; only the "paper joint venture" would be held liable.

That is very significant because under the Corporation Law, directors of a company formed cannot be held personally liable in case the company goes into default or committed a grave infraction of the law. Criminal and/or civil liabilities only arise when the evidence points to directors' direct and personal participation to the crime is established.

Its now clear that government cannot go after TIM and Smartmatic. So, who'll bear the responsibility now? It would only be COMELEC. TIM initially withdrew from the project out of fear that it'll be left holding an empty bag in case something bad happens. Now, it has an escape clause. We cannot go after the two companies.

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5:54 PM | 0 comments

Who or what convinced TIM to go back to the nego table with Smartmatic?

What transpired between Smartmatic International and Total Information Management (TIM) that convinced the two erring companies to again join hands and implement the poll automation project? Remember that it was only last Monday when TIM gave word that it's withdrawing from the deal. Then, this.

COMELEC chairman Jose Melo was mum about this so does Atty. Boy de Borja of TIM. Cesar Flores, Smartmatic International Sales director read a statement which essentially states the company's expression of renewed interests to work with TIM on the project. Both companies signed the joint venture agreement papers before COMELEC officials. The contract is supposed to be signed next week. Incorporation papers are to be submitted to the COMELEC next week.

Atty. de Borja credited the intercession of Senator Richard Gordon and Ambassador Henrietta de Villa.

Senator Gordon should come clean with this issue because, remember that he's one of the so-called presidentiables in the coming elections in 2010. What was his role? And what were the terms of reference that both companies agreed with the COMELEC?

These companies owe the Filipino public some explanation. This is not a private matter anymore. These companies entered into a 7.2 billion government contract. By its very nature, they should come clean and be transparent. They owe it to us, the Filipino People, to explain what really caused their previous disagreement and what made them go back to the negotiating table again.

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5:30 AM | 0 comments