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Posted on Tuesday, November 02, 2004

 

P3-B poll modernization goes wrong

By Lakambini A. Sitoy, Reporter

First of four parts

In the 1990s the idea of fully computerized elections was an appealing one. It was the decade when vast amounts of information were suddenly available through the Internet. Computerization and networking of government offices were being heralded as the modern solution to red tape and long queues. 

Although the Uni­ted States elections are fully computerized, the technology is not without its detractors. Critics of automation have argued that the systems are vulnerable to hackers if placed online or through physical interference with the machines. Politicians have been linked to the companies that produce the counting machines or developed the systems and software.

Automation has not gained absolute currency even in developed or First-World countries. According to the International Institute for Democracy and Electoral Assistance, the United Kingdom has started to experiment with vote-counting machines in some districts.

In Turkey most of the voting is done by machine, while in Belgium and the Netherlands approximately half the votes are counted automatically. In Switzerland a first count is done by hand, then the votes are counted by machines.

Norway, Germany and Brazil have partly used technology in elections, and India employed machines to count about 20 percent of its votes in its latest elections.

Indonesia, in its first direct presidential election held last month, counted the votes by machine, and then verified the returns through a manual count.

Canada, Australia, Ireland, Spain, Italy, France, Portugal, Finland, Denmark, Sweden, Malaysia and Russia continue to count their votes by hand.

But inspired by the example of a handful of developed countries, the Philippine Congress in 1995 authorized the Commission on Elections to conduct a nationwide demonstration of a computerized election system to be pilot-tested in the following year’s elections in the Autonomous Region of Muslim Mindanao.

Plans for automating the 1998 national and local elections were laid by December 22, 1997, through congressional authorization, but the Comelec eventually decided to limit automation to the ARMM.

Results of the May 2001 elections were counted manually, but the Comelec had not given up on the idea of automation.

Modernization gone wrong

In October 2002 it adopted a modernization program for the 2004 elections. Three phases made up the Automated Election System: 1) voter registration and validation, which involved cleaning up and updating the list of voters through capturing voters’ biometrics and personal data, 2) automated counting and canvassing, and 3) electronic transmission.

Total budget allocation for the modernization program was P3 billion. President Arroyo allocated, by way of executive order, P2.5 billion on January 24, 2003; at the request of the Comelec, she authorized the release of P500 million more.

Phase 2 of the project was awarded to Mega Pacific Consortium in a transaction currently being reviewed by the Senate blue-ribbon committee. 

Phase 1 and Phase 3 of the pro­ject were also controversial. Phase 1 was awarded to the French company Sagem SA, a company that, according to the Commission on Audit, was not eligible to bid for the project, because it failed the eligibility criteria that a company must be 60 percent Filipino-owned. After announcing this criterion on its invitation to bid, the Comelec passed a resolution changing the eligibility criteria, a decision that was not fair, the Commission on Audit said in a statement.

Phase 3 was awarded to Multi-Media Systems Inc. for P298,375,808.90, of which more than P260 million has been paid. The Comelec was supposed to lease Dream VSAT satellite transmission equipment from the company, for electronically conveying election results. But two days before the May 10 national and local elections, the Supreme Court barred the Comelec from using the system, pending resolution of a case accusing the poll body of violating an election code provision requiring a 30-day notice on the use of new technology before an election.

Phase 2

The Comelec was determined to carry out Phase 2 in the 2004 polls. On January 28, 2003, it issued an invitation to apply for eligibility and to bid. Single companies or “manufacturers, suppliers and/or distributors forming themselves into a joint venture” were eligible.

The criteria were further clarified on February 11. A Comelec resolution stated that bidders had to prove a “track record,” in which their counting machines should have been used in at least one political exercise with at least 20 million voters. For verification of voters, the bidders had to show “a reference site of an existing data base installation using Automated Fingerprint Identification System with at least twenty million” entries.

In the weeks leading up to this stage, the Comelec consulted with several agencies, including the Department of Science and Technology, and the private sector, to determine what standards of performance it should set for the machines and technology it needed.

By February 17, 2003, the Comelec was ready, and released a “request for proposal” to get the election automation machines. It specified the procedure to be used in the public bidding for the contract.

The procedure

The bidding was to be conducted according to a “two-envelope/two-stage system.”

The first envelope was to contain documents establishing the bidder’s eligibility to bid and its qualifications to perform the contract if accepted. The second envelope would be the bid itself.

Grades of pass or fail determined bidder eligibility. A prospective bidder who passed the legal, technical and financial requirements was considered eligible. But if it failed in any requirement, its bid was dismissed.

If one or more of the required documents was missing, the bid was to be rated failed.

The technical envelopes of those bidders which had passed or exceeded the passing score were to be opened next. Only bids that were determined to contain all the bid requirements for both components were to be rated passed and considered for comparison.

Deadline for the receipt of the bids was March 5.

The result

Out of 57 bidders the Comelec found Mega Pacific Consortium and the Total Information Management Corp. eligible.

The next stage, termed “post­quali­fication,” would determine whether the selected bidders had what it took to satisfactorily conduct automated elections. The Comelec’s Bids and Awards Committee (BAC) was to examine the documentary evidence they had submitted and make a decision based on each bidder’s financial, technical and production capabilities or resources.

The Comelec had already stipulated in its request for proposal that a bid that did not meet its standards would be rejected. Any shortcomings could not be corrected by the bidder after the fact.

But the Comelec could also waive an aspect of the bid that did not conform to its standards so long as it did not constitute a “material deviation”—provided the waiver would not affect the relative ranking of the bidder.

The two contenders, MPC and TIMC, were referred to the BAC’s Technical Working Group and the Department of Science and Technology for evaluation. 

Both bidders got a number of failed marks in the technical evaluation, according to the DOST. But these were not in exactly the same categories. Nonetheless, the Comelec decided, en banc, to award the contract to Mega Pacific Consortium. Resolution 6074 to this effect was promulgated on April 15, 2003, and publicized on May 16, 2003.

However, it was with “Mega Pacific eSolutions, Inc.,” a company that joined the bidding but did not meet the eligibility requirements, that the Comelec signed the contract for Phase 2. The contract did not indicate an exact date of execution, only that this was done in May. But it was notarized on June 30, 2003, documents at the Supreme Court said.

The case

Five individuals and entities wrote a letter on May 29, 2003, to Comelec Chair Benjamin Abalos Sr., protesting the decision on the ground of irregularities in the bidding. Citing noncompliance with the eligibility requirements, as well as technical and procedural requirements, they sought a new bidding.

The Comelec rejected the protest in a June 6, 2003, letter. So on August 6 the protesters petitioned the Supreme Court for certiorari—a remedy sought for “grave abuse of discretion” by a public office in the exercise of its duties.

The Court granted the petition. Following the receipt of oral arguments and pleadings, on January 13, 2004, it handed down its damning decision, G.R. No. 159139. The Comelec’s award of the Phase Two contract to Mega Pacific Consortium was illegal, it said: “a clear violation of law and jurisprudence.” Rendered “in reckless disregard of [the Comelec’s] own bidding rules and procedure.” 

The Court found that the contract had been awarded to a company that had not even participated in the bidding, in the process violating the requirements of R.A. 8436, the law authorizing the Comelec to use an automated election system, as well as those set forth in the Comelec’s request for proposal.

It noted, too, that the award to MPC had been performed with undue haste—coming a week before the Comelec had received a report and recommendations from the Bids and Awards Committee.

The two bidders that were considered eligible failed the technical tests conducted by the Department of Science and Technology. The Comelec should have declared the bidding a failure and conducted a rebidding.

The contract was thus nullified.

The latest word was that the Office of the Ombudsman has given due course to the criminal complaint against the commissioners of the Comelec and several individuals involved in the procurement of automated counting machines intended for use in the 2004 elections.

The Ombudsman’s order was based on the decision of the Supreme Court on January 13, 2004, and on the documented complaint filed by the Bantay Katarungan and Kilosbayan led by its president Rafael M. Alunan and former Senate president Jovito R. Salonga.

(To be continued)  

Part 1 |Part 3 |Part 4 |

    
 
 
 

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Francis Andaya, Judee Perculeza, Marizhen Doctora, Shey Silayan
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