MANILA, Philippines -- Backing out of a government project after it has been awarded to a winning bidder makes the supplier criminally liable and open to imprisonment of six to 15 years, Justice Secretary Agnes Devandera said on Thursday.

Devanadera voiced this position of the Department of Justice after the Commission on Elections gave poll automation consortium members Smartmatic International and Total Information Management (TIM) until Friday to iron out differences that led TIM to back out of their joint venture.

The Smartmatic-TIM joint venture won the contract to automate next year’s general elections with a P7.2-billion bid but the automation project has been threatened with derailment following TIM’s pullout.

Dutch firm Smartmatic needs Filipino firm TIM’s participation for the consortium and the project to continue.

“There is a penal provision under the Procurement Act. It’s what we follow,” Devanadera told the Philippine Daily Inquirer (parent company of INQUIRER.net).

“That’s just academic information,” Devanadera added, indicating that the legal position did not mean the Department of Justice has prejudged the case.