AES Watch asks to blacklist Smartmatic, and prohibit all its subsidiaries and representative offices from participating in any Philippine government procurement (including negotiated procurement).
6 November 2014
MR. DENNIS S. SANTIAGO
Executive Director IV
Government Procurement Policy Board
Department of Budget and Management
Ortigas Jr. Road, Ortigas , Pasig City
Dear Executive Director Santiago,
The Commission on Elections have started the procurement process on the Lease of Election Management System (EMS) and Precinct-Based Optical Mark Reader (OMR) or Optical Scan (OP-SCAN) System and Lease of Election Management System (EMS) and Precinct-Based Direct Recording Electronic (DRE).
The Automated Election Systems Watch (AES Watch) raises the concern of the involvement of Smartmatic in this procurement considering the blatant violation of this supplier in the 2010 AES Bidding and 2013 AES Bidding.
GPPB’s Manual for the Procurement of Goods and Services provides as follows:
“Generally, a supplier may be allowed to subcontract a portion of the contract or project. However, the supplier should not be allowed to subcontract a material or significant portion of the contract or project, which portion must not exceed twenty percent (20%) of the total project costs. The bidding documents must specify what are considered as significant/material component(s) of the project.
“All subcontractor arrangements must be disclosed at the time of bidding, and subcontractors must be identified in the bid submitted by the supplier.
“Any subcontracting arrangements made during project implementation and not disclosed at the time of the bidding shall not be allowed. The subcontracting arrangement shall not relieve the supplier of any liability or obligation under the contract. Moreover, subcontractors are obliged to comply with the provisions of the contract and shall be jointly and severally liable with the principal supplier, in case of breach thereof, in so far as the portion of the contract subcontracted to it is concerned.
“Subcontractors are also bound by the same nationality requirements that applies to the principal suppliers.”
Despite our concerns about relationship between Smartmatic and Dominion Voting Systems (DVS) and its violation of GPPB rules, COMELEC proceeded with awarding the contract to Smartmatic.
In 2013, the relationship between Smartmatic and DVS unraveled due to the inability of Smartmatic to deliver the source code to COMELEC.
Because of Smartmatic’s deception in not declaring true ownership of the PCOS hardware and software, the conduct of the 2013 elections was jeopardized.
The news article at http://newsinfo.inquirer.net/405371/comelec-starts-review-of-pcos-source-code before the 2013 elections showed that it was DVS and not Smartmatic that provided the source code to COMELEC. Further, such source code is contained in the CD shown at http://www.rappler.com/nation/politics/elections-2013/28551-pcos-source-code-presentation; notice the absence of any mention of Smartmatic.
There is incontrovertible proof that the PCOS machine and software is owned by DVS and NOT by Smartmatic. The legal suit between Smartmatic and DVS attest to this fact (http://www.scribd.com/doc/110048368/Smartmatic-Complaint-Vs-Dominion).
It then proves, in any reasonable person’s world that Smartmatic DID NOT declare its subcontracting arrangement with DVS when it submitted its bid in 2009, in clear violation of GPPB’s Manual for the Procurement of Goods and Services.
The process dictates that the submission for blacklisting be instigated by the procuring entity but AES Watch invokes its right to a “citizen’s arrest” since the COMELEC may not be motivated to change the status quo.
AES Watch formally submits its request to blacklist Smartmatic, and prohibit all its subsidiaries and representative offices from participating in any Philippine government procurement (including negotiated procurement).
The AES Watch is hoping for a quick resolution of this submission.
VP Teofisto Guingona
Bishop Broderick Pabillo
Sister Mary John Mananzan
Prof. Bobby Tuazon
Dr. Pablo Manalastas
Dr. Nelson Celis
Maria Corazon M. Akol
Anna Leah Escresa
Ricardo Bahague, Jr.
Rodolfo Noel I. Lozada Jr.
(Above letter was received by GPPB on November 10, 2014 and the receiving copy may be downloaded at https://dl.dropboxusercontent.com/u/85303072/AES%20Watch/AESWATCH%20Letter%20to%20GPPB.pdf)
- Executive Director IV, Government Procurement Policy Board, DBM
MR. DENNIS S. SANTIAGO
AES Watch requests to blacklist Smartmatic, and prohibit all its subsidiaries and representative offices from participating in any Philippine government procurement (including negotiated procurement).
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