MANILA, Philippines — After four days that generated plenty of politicking, the two companies that won the contract to conduct automated elections in 2010 have settled their differences.

Commission on Elections (Comelec) Chair Jose Melo announced the development, saying that Smartmatic International and Total Information Management Corp. (TIM) had agreed on the key provisions in their joint-venture contract.

“Finally, we were able to thresh out everything. Right now, Smartmatic and TIM people are signing the incorporation papers of the joint-venture company,” Melo, flanked by the Comelec commissioners, said at a press briefing Friday afternoon.

Smartmatic and TIM officials refused to explain how they came to an agreement, and Melo and other Comelec officials appeared unaware of the details of the deal.

Melo waved away questions on the arrangements between Smartmatic and TIM, saying a close look at their feud might raise new animosities again.

“Whatever internal arrangement they have, that’s between them. Don’t scrutinize it anymore. If you keep asking about it, it may open old wounds,” he said.

Melo added: “Everything seems to be back on track again. After one week of suspense and apprehension that we will be reverting to a manual system of elections, we are back with automation.”

Reiterate commitment

Officials of Smartmatic, a Holland-based company that conducted elections in Venezuela, and TIM, a Filipino information technology firm, issued a joint statement reiterating their commitment to the poll automation project.

“Both companies, fully aware that above all private concerns lies the desire of the Filipino people for automated elections, maintain the agreements reached in April this year, and gladly announce to the Comelec our continuation with the full automation of the elections in May 2010,” they said.

The two companies said they had signed all the documents for the incorporation of the joint venture, for submission to the Securities and Exchange Commission on Monday.

“Under the aegis of this joint-venture corporation, we shall move as one,” they said, adding that the P7.2-billion poll automation contract would be signed with the Comelec later next week.

“To all the stakeholders in the elections of 2010, Smartmatic and TIM would like to manifest our assurance that the automation of the 2010 elections will push through, and that we stand behind the Comelec,” the two firms said.

In tatters

Only last Monday the partnership was in tatters, with TIM president Jose Mari Antuñez notifying the Comelec that his firm was backing out of the project.

Antuñez, according to Melo, wanted out of the partnership because he felt that TIM had no say in the election operations and in fund disbursements.

TIM was also concerned about its liabilities. TIM lawyer Boy de Borja said a lopsided joint-venture contract would leave the firm in a precarious position in case the computerized polls fail.

Melo said the Comelec had initially planned to sign the deal with the joint-venture corporation and the individual companies of Smartmatic and TIM.

“But to make it more convenient in terms of auditing rules, we will only have one provider. So the contract will be between the Comelec alone and this joint-venture company,” Melo said.

He said that with the agreement in place, he doubted that the two companies would fight again.

“They have signed the contract,” he said, adding that Smartmatic and TIM would be haled to court if they backed out of the automation project.

Commissioner Nicodemo Ferrer said the important thing was that the two firms were back on board the poll automation project.

Arrangement internal

“Their arrangement is internal. We cannot broadcast it, in case they fight again,” Ferrer said.

As of Friday afternoon, the only thing clear was the liability issue, according to Commissioner Amado Velasco.

Under the deal, the joint-venture firm and the two mother companies (Smartmatic and TIM) will be held liable in case the project fails.

Velasco said the companies had initially said only the joint-venture firm would be held liable.

“We did not agree because what if there is malice from the individual companies?” he said.

Velasco said Smartmatic and TIM did not report to the Comelec their agreements on the issues of the disbursement of funds and operational control.

When asked by the Philippine Daily Inquirer about responsibility over the funds, TIM’s De Borja declined to answer.

Malacañang welcomed the news that the two companies were pushing ahead with computerized elections.

Reconciliation must be genuine

“We heave a big sigh of relief and congratulate the Comelec, Smartmatic and TIM for hurdling hopefully the last major obstacle to the full automation of next year’s polls,” Secretary Gabriel Claudio, President Gloria Macapagal-Arroyo’s political adviser, said in a text message.

Claudio said he hoped the poll body and the partnership would team up with watchdogs, the media and the electorate in ensuring credible elections.

But Agusan del Sur Rep. Rodolfo Plaza said the Comelec must make sure the reconciliation was genuine. He warned that the Philippines faced a bigger risk if the partnership dissolves again before or during the polls.

Bayan Muna party-list Rep. Teodoro Casiño was unimpressed by the announced reconciliation, and said the planned House inquiry into what had caused the quarrel should push through.

Inquiry to go on

“It is a matter of public interest that Smartmatic and TIM disclose what caused their feud, how it was resolved, and who were involved. This is not a private matter between lovers. The public has a right to know the things that threaten poll automation. The Comelec should compel both parties to reveal all,” Casiño said.

Speaker Prospero Nograles said he hoped that “instead of instigating a breakup between the two partners who are key in ensuring the success of our 2010 elections, our political leaders compel them to mend their differences and deliver their commitment for clean, honest and automated elections.”

“Let’s stop all these intrigues and let the Comelec do its job,” Nograles said.

Manual or automated

Before the news of the Smartmatic-TIM reconciliation broke, Ms Arroyo declared that the government would proceed with the 2010 elections regardless of whether these are computerized or not.

In a prepared message on Saturday’s celebration of Philippine-American Friendship Day, Ms Arroyo said Filipinos and Americans shared one core value—fierce commitment to electoral democracy and the institution of suffrage.

She said that in an electoral democracy, political leadership must “be won in a free and open contest” that could neither be “frustrated nor circumscribed.”

Most sacred duty

“And protection of the ballot is among the most sacred duties of those who govern us,” she said.

Ms Arroyo said this was why she had been pushing for the automation of the 2010 national elections from the start.

“The Palace will continue to support and respect the actions and decisions of the Comelec. With or without full automation, the elections will push through,” she said in the message read for her by Press Secretary Cerge Remonde.

“And no matter what form it may take, the elections must always be safeguarded by our people, as their birthright in a democracy,” she said. With reports from TJ Burgonio and Gil C. Cabacungan Jr.