SC: Comelec erred in disqualifying Smartmatic

BAGUIO CITY—THE Supreme Court has ruled that the Commission on Elections (Comelec) erred in disqualifying Smartmatic-tim Corporation from participating in the bidding process for the P17.9 billion Automated Election System (AES) contract for the 2025 national and local elections.

The decision was unanimously reached by the 15-man High Tribunal during its summer session held here. Despite its decision favoring Smartmatic’s petition, the SC did not nullify the P17.9-billion contract that the Comelec inked last month with a joint venture led by South Korea’s Miru Systems Co. Ltd.

SC spokesman, lawyer Camille Sue Mae Ting, clarified that the validity of Miru’s contract with Comelec was not the issue presented in the case before the SC. She added that the Court’s ruling is not tantamount to upholding Comelec’s contract with Miru since it was not the issue decided upon by the magistrates.

“However, the finding is not sufficient to nullify the public bidding or award of the contract. It cited considerations of equity, justice, practicality, and the doctrine of operative fact,” the SC said in a statement.

In granting the petition, the SC held that the Comelec “committed grave abuse of discretion” when it disqualified Smartmatic before it had submitted any bid, without any reference to the eligibility requirements prescribed by its Bids and Awards Committee (BAC).

The Court said the poll body implemented a “discretionary” pre-qualification process that is contrary to the provisions of the Government Procurement and Reform Act.

“This means that the law produced consequences that cannot always be ignored or disregarded. It nullifies the law but sustains its effects. It is only resorted to as a matter of equity and fair play.”

It can be recalled that Smartmatic received an invitation from Comelec to attend the Election and Procurement Summit for the 2025 elections.

The company purchased the bidding documents and participated in the prebid conference. However, the poll body disqualified Smartmatic from taking part in all biddings on its procurement processes.

Comelec Chairman George Garcia said the decision was reached to “preserve the integrity of the electoral process” in the country.

While Comelec maintained that there were no irregularities in the conduct of elections in the country, Garcia said the poll body could not close its eyes to the current issues hounding Smartmatic.

The Comelec added that its decision was consistent with its constitutional mandate to enforce and administer all laws and regulations relative to the conduct of elections under the Constitution.

This prompted Smartmatic to elevate the case before the SC through a petition for certiorari with a plea for the issuance of a temporary restraining order (Tro)/writ of preliminary injunction (WPI).

The Court did not grant ATRO/WPI saying that Smartmatic was merely a prospective bidder with “no actual, clear, and positive right” and that it also will not suffer irreparable injury.

This paved the way for Comelec to proceed with the public bidding and awarding of the contract to Miru.

Ting said with the court’s decision, Smartmatic can still participate in future bidding processes for elections.

“As of now, Smartmatic can indeed participate in the next elections but subject to, let’s say, if anyone files a disqualification case against them again,” the SC spokesman said.

Smartmartic: ‘Significant victory’

MEANWHILE, in a statement, Smartmatic welcomed the Court’s ruling and considered it “a significant victory for fairness and the rule of law.”

“We welcome the Supreme Court’s ruling in our favor, which restores justice and sends a clear message to those at the helm of Comelec that due process matters,” Smartmatic lawyer Christian Robert Lim said.

“The verdict dealt a blow against the questionable actions of certain Comelec commissioners which include sudden and random declaration of the vote counting machines (VCMS) as unserviceable despite several more years of functionality and ongoing warranty,” he added.

With the Court’s ruling, Smartmatic said it would explore opportunities to help in the ongoing modernization of the country’s election system.

‘No impact’

COMELEC said the SC decision will unlikely affect the poll body’s preparations for the 2025 polls.

In an interview last-wednesday, Comelec Spokesperson John Rex C. Laudiangco said the agency is still waiting for an official copy of the decision.

However, he said that based on the summary of the ruling issued by the High Court on the case, it will not have an impact on the outcome of the public bidding for the services they will need for the 2025 National and Local Elections (NLE).

“We are thankful it will not affect the public bidding and the awarded contracts so that it will not disrupt our preparations for the Comelec automation in 2025,” Laudiangco said in Filipino.

Garcia said the Comelec en banc will decide if it will file an appeal on the Smartmatic ruling.