MANILA, Philippines---The agreement by Smartmatic International and the Technical Information Management Corp. to go implement the computerization of next year’s elections should squelch speculation that the administration was bent on scuttling it.

With the two companies coming to terms, the public should now have "complete faith and trust'' that the Commission on Elections could computerize next year's elections, deputy palace spokesperson Lorelei Fajardo said Saturday.

"This should put an end to speculations" that Malacañang is not keen on computerized elections,' she said over dzRB.

Smartmatic and TIM agreed Friday to thresh out their differences and formalize their joint venture, which won the P7.2 billion poll automation contract with the Comelec.

TIM had threatened to pull out from the partnership, a move that could have derailed the country's first attempt at automating national elections.

Speculations swirled that TIM had been influenced by Malacañang to withdraw from the joint venture to sabotage poll automation. President Gloria Macapagal-Arroyo and First Gentleman Jose Miguel were special guests in the 1994 inauguration of TIM's business recovery service center.

Fajardo said Malacañang hoped that the preparation for computerized elections would be smooth and free of kinks.

"TIM knows how important poll automation is to the Filipinos. I'm sure they have the social responsibility to fulfill their commitment. We're hoping that no problem will arise. If it does, it will be solved,'' she said.

"What we need now is for us to work together. Let's trust our institutions and we should be more vigilant. Whether there's automation or not, the success of the election in 2010 depends on the people. Their vote is important and we should protect this,'' she said.

Had the two companies failed to agree, Comelec would have considered entering into a joint venture with Smartmatic. Even so, this could raise legal questions and still would have delayed the implementation of the automation project.

In a prepared message on Philippine-American Friendship Day Saturday, Ms Arroyo declared that the government would press ahead with the elections with or without automation.

Next year's elections are seen as a referendum on the administration, and Ms Arroyo is hoping the automation would work to erase the stigma of the "Hello, Garci'' wiretapping scandal.

The scandal, which broke in mid-2005, set off charges that Ms Arroyo called an election official to rig the results of the 2004 presidential vote in her favor.