According to Chairman Saidamen Pangarungan on Tuesday, the Commission on Elections (Comelec) is suspending a P90-million payment to Smartmatic, the technology provider for the May 9 elections, until the firm has demonstrated its innocence in the data breach matter.
During a hearing before the Senate Committee on Electoral Reforms, Pangarungan stated that if a contract violation is proven, the poll body’s options for dealing with Smartmatic include contract termination and possible blacklisting, forfeiture of performance security, damages under the Data Privacy Act, and the Civil Code of the Philippines, and the filing of criminal cases.
“So far, we have not put in any of these except to withhold payment to Smartmatic. I have not signed the voucher for the payment to Smartmatic in the amount of P90 million under our contract because we want to clear this matter about this leakage… of some data,” he said.
He claimed the P90 million was meant to be part of the Comelec’s payment to Smartmatic in the third tranche, due in early March.
Pangarungan said the government would pay, “Once we are convinced that Smartmatic is innocent about this data leakage.”
Gov’t withholds P90-M payment to Smartmatic
Christian Robert Lim, a former Comelec commissioner who is now a legal counsel for Smartmatic, admitted the payment withholding and stated that they are “cooperating in whatever way feasible” with the Comelec.
Pangarungan, on the other hand, claims that the situation is not causing any delays in the May 9 polls.
Marcos, the sister of presidential candidate Ferdinand “Bongbong” Marcos Jr., then requested the Comelec if it was necessary to change the automated elections law to require Smartmatic to send a report when a breach or system interference is detected within a defined time frame.
She stated that Smartmatic must demonstrate that its systems are safe and secure for authorities and the general public to believe in the elections.
“We will study all these options,” Pangarungan answered. “As the elections are coming near, because of the proximity of the elections, it is not wise to take any drastic action against Smartmatic that might prejudice the conduct of the elections on May 9.”