Senate panel subpoenas firm in Miru joint venture

The Senate committee on electoral reforms and people's participation has ordered the issuance of a subpoena against St. Timothy Construction Corporation, one of the companies in the joint venture that won the contract for the new automated election system (AES) for the 2025 National and Local Elections (NLE).

This developed after the firm failed to send a representative who could answer concerns raised by several senators during the Senate panel's hearing on the Commission on Elections' procurement of the AES and preparations for the 2025 NLE.

Senator Risa Hontiveros turned the manifestation of Senate Minority Leader Aquilino "Koko" Pimentel III to subpoena St. Timothy Construction Corporation into a motion. Senator Imee Marcos, chairperson of the Senate panel, later approved the motion.

St. Timothy is one of the Filipino corporations that joined Korean firm Miru Systems Company Limited in the joint venture that won the P17.99-billion contract to supply the new system and automated counting machines (ACM) for the 2025 polls.

The two are joined by Integrated Computer Systems and Centerpoint Solutions Technologies, Inc. in the joint venture for the Comelec procurement.

The joint venture sent Ernani Lim, who said he was authorized to speak on behalf of St. Timothy. However, the senators established that he has not enough authority to answer their questions.

Prior to the ruling, Pimentel raised questions against St. Timothy, asking why a construction company is involving itself in election systems.

Lim explained that St. Timothy was involved because of its financial capability to fund the contract for the 2025 AES.

"When we formed the group, each one has its own responsibility. In the case of St. Timothy, they will be a financial supporter because of the amount that was involved in investing for the project," Lim responded to Pimentel.

However, Pimentel could not help but notice that the "golden age of infrastructure" has led to the fact that only construction companies have the capital for government projects, noting the Department of Education’s (DepEd) controversial procurement of laptops wherein another construction firm was involved.

"Construction company ang nag-supply ng laptop sa DepEd. Mapapakamot ka talaga ng ulo mo eh (A construction company supplied laptops to DepEd. It's a real head scratcher)… It's all about the financial muscle of the construction companies which may have been the result of the so-called 'Golden Age of Infrastructure.'"

Apart from this, Marcos questioned the increase in capital of the firm and "sudden infusion of money into the company" after the pandemic, even if there were no changes in the shareholdings.

Marcos disclosed that the primary owner was "determined to sell" the company even if its assets showed that it was earning well.

Asked if the Comelec did due diligence on St. Timothy, Garcia said the poll body only relied on the submission of the firm's 131 ongoing contracts and the Comelec Special Bids and Awards Committee's verification if it was blacklisted or suspended by the DPWH or in the Philippine Government Electronic Procurement System (PhilGEPS).

Marcos then raised the possibility that the owners of the firm were politicians who might run in the 2025 polls, but Garcia said there were no political figures who were part of St. Timothy's board members.

"Puro public works 'to (contracts). Mahirap paniwalaan na hindi pulitika (The contracts are all for public works. It's hard to believe that it's not for politics)," Marcos quipped.

Garcia insisted that the Comelec did due diligence, but he also said that it was not aware of the history of increase in St. Timothy's capital.

Marcos also disclosed that the St. Timothy's registration with Philippine Contractors Accreditation Board has already expired.

Meanwhile, Hontiveros raised anew the links of St. Timothy to a company that was supposedly blacklisted by the Department of Public Works and Highways (DPWH).

"[Is] Comelec aware about this blacklisting of another entity with which St. Timothy shares offices and officers blacklisted by the DPWH?" Hontiveros asked.

Comelec Chairman George Garcia explained that the firm which Hontiveros referred to did not appear in any of the documents submitted by St. Timothy to the poll body.

"What appeared was only St. Timothy and the other two [joint venture] partners of St. Timothy," Garcia said.

Meanwhile, the track record of Miru Systems was also scrutinized by the Senate panel.

Marcos particularly raised the case in Congo which she said 45.1% of all polling stations experienced problems with technology, while 75% of the voting machines malfunctioned in Iraq.

Jason Lee, who translated the response of Miru Systems CEO Chun Jin Bok, said that the 45.1% was an "exaggerated" percentage and it was due to the delay in the logistics, which was handled by the election commission of Congo.

On the Iraq polls, Lee said that the problem was not on the machines but on the transmission failure.

He added that there’s less than one percent for transmission failure and Miru had corrected the situation two days later or on the actual election day.

A letter from the chairman of the elections commission of the Democratic Republic of Congo, as well as the Prime Minister of Iraq, attesting the "very successful" conduct of the polls have been submitted to the Comelec, according to the Miru representatives.

Marcos said the Comelec should coordinate with the Department of Foreign Affairs to verify the credibility of the polls in Iraq and Congo to ensure that Miru is reliable in providing the AES for 2025 polls.

Lawmakers, election watchdogs, and other groups earlier expressed concern and called on the Comelec to stay vigilant and review Miru's track record.

However, Miru Systems earlier said the allegations of election failures due to its technology were false.

It was declared ineligible in the first round of bidding in December 2023 for its failure to meet the legal requirements of the lease contract. The Comelec Special Bids and Awards Committee conducted a second round of bidding where Miru submitted new documents.

In January, Miru was deemed eligible to proceed with the bidding process after complying with all the legal and financial requirements for the project. — VDV, GMA Integrated News