MANILA, Philippines--The fear of criminal prosecution and the corresponding punishment prompted Total Information Management Corp. to rethink its decision to pull out of its partnership with Smartmatic, thus putting the 2010 poll automation back on track, Makati Rep. Teodoro Locsin said Saturday.

Locsin, who chairs the House committee on suffrage and electoral reforms, said also he thinks that even if the relationship of TIM and Smartmatic has been tainted by a nearly catastrophic squabble, there is still a good reason to continue automating the 2010 elections.

“Definitely, it's a vast improvement over the manual,” Locsin said in a phone interview.

When asked if he was worried that automation could be derailed again, he said that once the contract between Smartmatic, TIM and the Commission on Elections is signed, “everything takes on a life of its own.”

But Kabataan party list Rep. Raymond Palatino could not breathe easy yet. According to him, many allegations were made in the days when automation was in limbo, and these have to be cleared up. He said the Comelec should investigate the claims, including those that link the President's husband to TIM.

“The Commission on Elections cannot just expect us to breathe a sigh of relief now that partners TIM and Smartmatic seem to have made peace with each other. Grave issues and accusations have been brought to our concern and these inevitably affect the integrity and credibility of the 2010 automated polls,” he said in a statement.

He also joined calls for the poll body to disclose the reason behind the fight and reconciliation of TIM and Smartmatic so that subsequent proceedings would not be suspect.

“The Comelec must from now on be transparent. This is the only way that the Comelec can appease the public and assure that the 2010 polls will be free from possible manipulation and further controversy,” he said.

Locsin surmised that the resurrection of the country's automation plan was due to the threat of punishment on TIM officials if they backed out of the project after winning the bid.

Comelec Chair Jose Melo and Justice Secretary Agnes Devanadera have both warned of big liabilities for the Filipino-owned firm if it withdrew. The Senate also announced that it would conduct an investigation into the matter.

“I don't believe it was patriotism that made TIM change its mind. Its fear was imprisonment, which is a legitimate thing,” Locsin said. “I guess he realized which is better between getting cold feet from going ahead with the project or sharing a cell with a cellmate.”

He earlier alleged that TIM head Jose Mari Antunez' demands from Smartmatic, including that of a P500 million payment, led to the squabble between the two companies. He believes that TIM made the impossible demands in order to get out of the contract.

Antunez denied ever making the P500 million demand. A lawyer for TIM had said the company was concerned about its deal with Smartmatic being lopsided especially when it comes to shouldering responsibility in case of a failure of automation, while Melo, quoting Antunez, had said that the latter wanted out because TIM had no say in the operation and fund disbursements.

While happy with TIM's reconciliation with Smartmatic, Locsin said he wanted to take a deeper look into the company's 2004 deal with the camp of Fernando Poe Jr.

A Palace official had said that TIM was more closely tied with the opposition rather than with the administration because it conducted a quick count for the camp of Poe when he ran, and lost, for President in 2004.

Locsin said that if TIM had a regular business contract with the opposition, then there was no problem at all. But if TIM had done the quick count for free, then it may have an emotional attachment or political loyalty to the opposition, he added.