AN hour after Commission on Elections (Comelec) Chairman Jose Melo suspended on Monday transactions with the technology provider for the 2010 automated election pending submission of the joint-venture papers of the winning consortium, a bombshell was dropped on his doorstep: the local partner, Total Information Management Corp (TIM), had withdrawn from its partnership with Smartmatic International Inc.

Melo said he was personally informed by Jose Antuñez that they are pulling out of the P11.3-billion project.

“Mr. Jose Antuñez [president of TIM] came to my office and told me they are withdrawing from the project, citing their irreconcilable differences [with Smartmatic],” Melo told reporters.

Due to the withdrawal, the possibility of a manual election increased further, as Smartmatic will not have any local partner in handling the project.

“Magma-manual siguro tayo [We might have to go to manual]”, Melo said.

Earlier, before Melo got wind of TIM’s withdrawal, he had given the consortium an ultimatum to submit by Friday the joint-venture contract submitted to the Securities and Exchange Commission. If the document is not submitted by Friday, the poll official said, the entire transaction with Smartmatic-TIM would be called off, possibly with the calling of a second round of bidding; or as a last resort, reverting to manual elections.

Smartmatic officials were obviously caught off-guard by the decision of their TIM counterparts.

“We had a partner one hour ago; we are waiting for them to honor their commitment,” Smartmatic spokesman Cesar Flores said in an interview.

“Of course [we were surprised]. No [we did not have any inkling]. We worked very well during the bidding preparations, during the joint-venture agreement and the whole process… We had a partner one-hour ago.”

The Comelec chairman still left some room for automating next year’s elections, saying they are still exploring the possibility of Smartmatic being able to do the project alone.

“We will study if that is legally acceptable, if it’s possible for Comelec and Smartmatic” to partner for the conduct of the exercise.

Melo said they are also exploring the possibility of reconsidering the bids of the six disqualified bidders.

Comelec disappointment

The poll chief said it is frustrating to know that TIM is seemingly putting “personal interest” ahead of a matter of national importance.

“I told them that the elections must push through. If you withdraw, all is lost. You are putting your private interest above that of the national interest,” he said.

Melo asserted that the Comelec would not allow TIM to walk away easily. “We will see to it that they will be criminally-liable….You can’t just bid, then walk away after you’ve won. We are a constitutional body; you can’t just trifle with us,” Melo declared in Filipino.

Melo said they are set to look at the names behind TIM to see if these people may have been influenced by groups who are against automated elections.

The Netherlands-based Smartmatic, meanwhile, remains hopeful that things will be resolved with their former partner.

“We are continuing conversations [with TIM] in order to ensure that the Comelec contract is signed,” Smartmatic project manager Juan Villa said.

TIM officials have refused to comment despite repeated requests and attempts by Comelec-based reporters. (S. Fabunan)