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Miru Systems, Comelec urged to be transparent on joint venture after STCC exit

Article (news)

Paige Javier

ABS-CBN News

QUEZON CITY – Civil society organization &quot;Right to Know, Right Now!&quot; is calling for transparency from Miru Systems Co. Ltd. and the Commission on Elections (Comelec) on the status of the joint venture agreement, following the exit of one of their local partners.The coalition said it is &quot;deeply concerned&quot; on the impact of the withdrawal of St. Timothy Construction Corporation from the close to P18-billion contract for the 2025 national and local elections.STCC provided the Net Financial Contracting Capacity (NFCC) or the financial capacity to complete a project. Following the exit of STCC, Miru is left with Integrated Computer Systems, Inc. (ICS), and Center Point Solutions and Technologies, Inc. (CPSTI).&quot;Ilabas lahat ng mga detalye kung ano ang pangyayari at nagaganap ngayon sa kontrata… Sino ang sasalo ng financing na parang nakatengga sa ere lalo umalis na St. Timothy?&quot; the organization&#x27;s co-convenor and veteran journalist Malou Mangahas said.&quot;There are gaps in the status now of the JV [joint venture] and therefore possibly gaps in trust. And therefore possibly reputational damage kung ano ba talaga ang sitwasyon sa kontrata,&quot; she added.It wrote a demand letter to the South Korean firm and its remaining local partners seeking for &quot;full and prompt disclosure&quot; of information, data, documents and documentation on the status, changes and updates of its joint venture agreement.The group also sent an omnibus freedom of information request to the Comelec for the same data.&quot;Dapat clean, honest, fair and inclusive elections ang ideliver nila. Dapat ang Comelec at ang Miru JV maging bukas, full disclosure sa lahat ng detalyeng ito. Para kung anong mangyari, alam ng taongbayan kung saan sasablay, sino may dahilan ng pagsabalay at bakit alam natin bago tayo bumoto,&quot; Mangahas said.&quot;Maputol yung isa o madelay [yung sa timeline] yung isa, hindi susunod yung susunod na milestones. By the way, this contract has 15 milestones. Medyo malaki at mahaba yung deliverables itong October, November, December,&quot; she added.Among the data the group requested:    - Specific roles and responsibilities of each remaining partner including their technical, operational and financial responsibilities    - Updated documentation showing the financial capacity of remaining partners    - Detailed breakdown of the ownership structure of the remaining partners    - Clear statement on how liabilities initially under STCC will be redistributed    - Revised project timelines and milestones and how remaining partners will meet these deadlines    - Provisions for dispute resolution on how internal issues will be resolved    - Detailed provisions demonstrating full compliance with the Government Procurement Reform Act    - Proof of performance guarantees or committed line of credit to cover financing required to implement the FASTrAC contract    - Contingency plans&quot;We need to be assured that the 2025 election can proceed as they contracted. There is now a major question. Bagama&#x27;t tayo ay tinitingnan ang filing of candidacies at kailan ang eleksyon, pag bumoto tayo ay saklaw na yun ng kontrata,&quot;  the group&#x27;s co-convenor Atty. Nepomuceno Malaluan said.Comelec Chairman George Garcia earlier said the project will go on despite STCC&#x27;s withdrawal from the joint venture.He said the remaining partners must assume the obligations of STCC and submit an NFCC equal to the contract price or committed line of credit from a commercial or universal bank at least 10% of the contract price.Garcia also asked its Law Department to determine STCC&#x27;s liabilities.&quot;We feel, we believe that the Comelec cannot diminish or maliitin yung implikasyon nitong STCC. Only the disclosure of the information that we demanded can give us some level of assurance, faith and comfort na ang halalan sa 2025 na magaganap as schedule under the automated election framework,&quot; Malaluan said.&quot;We believe there are important lessons for the Comelec in succeeding contracts. Hindi lang sa punto ng who&#x27;s accountable. It is also about ensuring that we get the service that we the citizens deserve,&quot; he added.The coalition said it will wait for 15 working days or until October 31 for the response of Comelec, Miru, and its remaining partners.After which, in the absence of the disclosure, the group will seek all available remedies including judicial remedies if necessary.<div>GROUP TO MIRU: WHERE ARE YOU?</div>The coalition urged Miru Systems to have a spokesperson or representative available should there be issues that need to be addressed.The South Korean firm usually releases statements when asked by media. Some officials also answered questions in past events and interviews.&quot;Yes. They have to especially at this time have an ability to speak and respond to questions directly from the public,&quot; Malaluan said.The group said it not receive a response from Miru and they questioned why the office address listed was &quot;non-existent&quot; when they visited it.The addresses they sent the demand letters to were from the contracts and their records in the Securities and Exchange Commission (SEC).&quot;Ang big challenge is humarap yung Miru. We have not heard from them. Bakit puro Comelec? Tungkulin ng Comelec pero tungkulin din nila lalo&#x27;t sila yung nagkawatak-watak. Lalo&#x27;t dapat sila magpaliwanag saan galing yung pera ngayon,&quot; Mangahas said.&quot;For the Miru JV, talk to us. Where are you? Hindi nga namin makita kung nasaan sila dahil yung opisina ang sabi wala daw dun ang Miru…. Bakit wala sila? Bakit hindi tinatanggap ang aming demand letter ng Miru Systems? We wanted to give them fair shake. Sagutin niyo, lumabas kayo,&quot; she added.<div>MIRU&#x27;S RESPONSE</div>In a statement, Miru Systems Joint Venture reiterated its capacity to provide a successful and advanced electoral system in the 2025 polls.&quot;We have proven our ability to accomplish all requirements of the Comelec&#x27;s Terms of Reference in due time. In fact, as of today, 78,338 of the 110,000 Automated Counting Machines (ACMs) have been delivered to the Philippines,&quot; it said.&quot;While STCC had no inputs on the electoral systems or machines of Miru, we understood that any perceived or potential conflict of interest would run counter to our shared goal of advancing the country’s voting processes,&quot; Miru added.The South Korean firm earlier said it has submitted its replacement NFCC to the Comelec, assuring the poll body the remaining partners are capable of complying and completing the project.In a document, it showed that ICS has an NFCC of P19,508,144,806.50.&quot;While STCC helped to provide such documentation, it did not provide the actual financial backing. Even with STCC’s withdrawal, the JV continues to be 60% Filipino-owned, with the remaining partners absorbing the minimal share of STCC,&quot; it added.Miru also responded to the allegation that its office is non-existent and could not be found by members of the coalition.&quot;Once we were awarded the bid in March 2024, Comelec, to better oversee the project, requested for a satellite office closer to its office in Intramuros, Manila for a more efficient means of coordination and communication, which we complied with. The updated record reflecting this change of address to ECJ Building, Real corner Arzobispo Street, Intramuros, Manila was duly approved by the Securities and Exchange Commission (SEC),&quot; it explained.&quot;Miru’s satellite office is used for administrative purposes, but all automated counting machine (ACM) manufacturing occurs in the main warehouse in Seoul, South Korea. This is the main branch that Comelec does business with, and the branch that several election watchdogs, media partners, and Comelec officials have visited to observe the production of electoral materials,&quot; Miru added.The South Korean firm renewed its commitment to remaining transparent as it finishes delivering the systems for the upcoming elections.

Civil society organization "Right to Know, Right Now!" has called for transparency from Miru Systems Co. Ltd. and the Commission on Elections on the status of the joint venture agreement, following the exit of one of their local partners.

Civil society organization "Right to Know, Right Now!" has called for transparency from Miru Systems Co. Ltd. and the Commission on Elections on the status of the joint venture agreement, following the exit of one of their local partners.