COA questions Comelec-Smartmatic contract in 2010 poll

MANILA, Philippines—The government had been disadvantaged by the P500-million contract between the Commission on Elections and the Smartmatic International Corp. (SIC) for the delivery of ballot boxes in the 2010 elections, state auditors said.

The Comelec paid Smartmatic P526,624,390.24 for the delivery and transport of ballot boxes to polling precincts during the May 10, 2010 elections and the subsequent Nov. 13, 2010 elections, the Commission on Audit noted in its 2010 annual audit report.

The bill was divided into P519,024,390.24 for Smartmatic’s services in the May 10 national elections and P7,600,000 for the Nov. 13 elections, according to the COA.

After sifting through the documents, the auditors discovered a discrepancy in the number of ballot boxes procured and actually delivered, and found that the government paid for undelivered boxes.

COA said the elections’ body ordered 77,000 ballot boxes from Smartmatic for the May 10 elections, and 630 ballot boxes for the subsequent elections in November. But it turned out it paid for a total of 700 ballot boxes in the November elections, or 70 more than ordered.

“A difference of 70 pieces of ballot boxes existed between the purchased 630 pieces and the delivered 700 pieces. It appears that the 70 pieces were doubly charged for their transport and delivery by SIC for P759,999.80 (at a price of P10,857.14 apiece) as these ballot boxes must have come from the original deployment contract,” it said.

COA also observed that Smartmatic charged very high delivery costs, ranging from P6,740.57 apiece in the May elections to P10,857.14 in the November elections.

It recommended that Comelec deduct P759,999.80 from the second contract. “We also recommended that the honorable en banc commission review the two contracts for the transport and delivery of the ballot boxes … as these appear excessive,” it said.