The Miru Joint Venture should come clean on whether it can deliver on its P17.9-billion contract to automate the May 2025 elections after the departure of a major partner, a group advocating freedom of information said on Tuesday, October 15.
St. Timothy Construction Corp. (STCC) withdrew from the joint venture on Sept. 27 to avoid possible conflict of interest after one of its owners declared plans to run for an elective post in Pasig City next year.
It was the STCC that presented a P41-billion net financial contracting capacity (NFCC) as proof that the Miru Joint Venture can fund its “deliverables” to the Commission on Elections (Comelec).
With its exit, only South Korea’s Miru Systems Co. Ltd. and Philippine companies, Integrated Computer Systems Inc. (ICS) and Centerpoint Solutions and Technologies Inc., are left in the joint venture.
“Only the disclosure of the information demanded can give us some level of assurance, and faith and comfort that the 2025 elections will proceed as scheduled,’’ Nepo Malaluan, co-convenor of the Right to Know, Right Now! Coalition, said in a briefing in Quezon City.
‘Only the disclosure of the information demanded can give us some level of assurance, and faith and comfort that the 2025 elections will proceed as scheduled,’’
Nepo Malaluan, co-convenor of the Right to Know, Right Now! Coalition,
The coalition on Oct. 9 filed a demand letter asking the Miru Joint Venture to disclose its capability to comply with the terms of the agreement, as well as the responsibilities and liabilities of the remaining partners.
It also submitted an omnibus freedom of information (FOI) request to the Commission on Elections (Comelec) for the disclosure of the same data.
“Imagine the biggest player in the joint venture suddenly withdrew. Who then can guarantee that these things will be delivered? The list of deliverables is quite big and long,’’ coalition co-convenor Malou Mangahas said.
Imagine the biggest player in the joint venture suddenly withdrew. Who then can guarantee that these things will be delivered? The list of deliverables is quite big and long.
Malou Mangahas, r2krn co-convenor
“That’s why we’re telling Comelec, put everything out there. And for Miru JV, talk to us. Where are you?… Are we talking to a phantom joint venture here?’’ she added.
‘Worrisome‘
It would await Miru Joint Venture and Comelec to make the disclosures by the end of the month, otherwise it would explore “all possible remedies, including judicial remedies, if necessary,’’ Malaluan said.
“He’s telling us, ‘Don’t worry’,’’ he said of Comelec Chair George Erwin Garcia. “Our response is, ‘We’re very much worried’.”
In an Oct. 11 statement, the Miru Joint Venture said it submitted a new NFCC to assure Comelec that its two remaining Philippine partners, particularly ICS, were capable of complying with the terms of the deal.
“While STCC helped to provide such documentation, they did not provide the actual financial backing, nor did they provide any inputs to the electoral systems or machines,’’ it said.
As of Tuesday this week, it said it has delivered 78,338 units or 71 percent of the 110,000 automated counting machines (ACMs) for next year’s elections. It has also completed the delivery of election peripherals.
“This has not impacted any of our operations, and we remain committed to delivering on our promise of a more advanced electoral system in the country,’’ Ken Cho, Miru VP for overseas sales, said in the statement.
Is the contract still valid?
The coalition also demanded to know if the joint venture would still comply with the 60-40 equity requirement under the Government Procurement Law in favor of Philippine nationals and entities.
Of the P17.9-billion supply contract, the Philippine partners have to raise P10.74 billion and Miru P7.16 billion.
“If the two Philippine partners have no financial capacity, and Miru is left alone to finance, then we have a contract that violates the law,’’ Malaluan said.
Even with STCC’s exit, the joint venture “remains to be 60% Filipino owned, with the remaining partners keeping the previous shares of STCC,” the Miru Joint Venture said in its Oct. 11 statement.
Malaluan agreed with observations that the withdrawal of STCC could possibly affect the “continuing validity of the contract.’’
“I’m sure there will be parties that will zero in on that issue,’’ he said.
The Miru Joint Venture became the sole bidder for the contract after the Comelec disqualified Smartmatic on allegations that it had bribed a former chief of the elections body.
The Supreme Court reversed Comelec’s disqualification of Smartmatic but allowed the poll body to proceed with the Miru deal. — PCIJ.org