Republic of the Philippines

SUPREME COURT
Manila

EN BANC

H. HARRY L. ROQUE, JR., JOEL
R. BUTUYAN, ROMEL R.
BAGARES, ALLAN JONES F.
LARDIZABAL, GILBERT T.
ANDRES, IMMACULADA D.
GARCIA, ERLINDA T.
MERCADO, FRANCISCO A.
ALCUAZ, MA. AZUCENA P.
MACEDA, and ALVIN A.
PETERS,
Petitioners,
- versus -

COMMISSION ON
ELECTIONS,
Repe!en"ed #$ HON. CHAIRMAN
JOSE MELO, COMELEC
SPECIAL BIDS and A%ARDS
COMMITTEE, epe!en"ed #$ &"!
CHAIRMAN HON. FERDINAND
RAFANAN, DEPARTMENT OF
BUDGET and MANAGEMENT,
epe!en"ed #$ HON. ROLANDO
ANDAYA, TOTAL
INFORMATION MANAGEMENT
CORPORATION and
SMARTMATIC
INTERNATIONAL
CORPORATION,
Responents!

PETE QUIRINO'QUADRA,
Petitioner-in-"ntervention!
G.R. N(. )**+,-


Present#

PUNO, C.J.,
$U"SUMB"N%,
&

'NARES-SANT"A%O,
CARP"O,
CORONA,
CARP"O MORA(ES,
C)"CO-NA*AR"O,
+E(ASCO, ,R!,
NAC)URA,
(EONAR-O--E CASTRO,
BR"ON,
PERA(TA,
BERSAM"N,
-E( CAST"((O, an
ABA-, JJ!















SENATE OF THE PHILIPPINES,
represente b. its Presient, JUAN
PONCE ENRILE,
Movant-"ntervenor!



Pro/ul0ate#

Septe/ber 12, 3224
5-----------------------------------------------------------------------------------------5
D E C I S I O N

VELASCO, JR., J..

"n a e/ocratic s.ste/ of 0overn/ent, the people6s voice is soverei0n!
Corollaril., choosin0 throu0h the ballots the /en an 7o/en 7ho are to 0overn
the countr. is perhaps the hi0hest e5ercise of e/ocrac.! "t is thus the interest of
the state to insure honest, creible an peaceful elections, 7here the sanctit. of the
votes an the secrec. of the ballots are safe0uare, 7here the 7ill of the
electorate is not frustrate or uner/ine! 8or 7hen the popular 7ill itself is
subverte b. election irre0ularities, then the insiious sees of oubt are so7n an
the ieal of a peaceful an s/ooth transition of po7er is place in 9eopar.! To
auto/ate, thus brea:in0 a7a. fro/ a /anual s.ste/ of election, has been vie7e
as a si0nificant step to7ars clean an creible elections, unfettere b. the travails
of the lon0 7ait an cheatin0 that have /ar:e /an. of our electoral e5ercises!

The Co//ission on Elections ;Co/elec<, private responents,
the National Co/puter Center an other co/puter 7i=ars are confient that
nation7ie auto/ate elections can be successfull. i/ple/ente! Petitioners an
so/e s:eptics in the infor/ation technolo0. ;"T< inustr. have, ho7ever, their
reservations, 7hich is >uite unerstanable! To the/, the auto/ate election
s.ste/ an the unteste technolo0. Co/elec has chosen an set in /otion are
pre0nant 7ith ris:s an coul lea to a isastrous failure of elections! Co/elec,
the. alle0e, 7oul not be up to the challen0e! Cheatin0 on a /assive scale, but this
ti/e facilitate b. a /achine, is perceive to be a real possibilit.!

"n this petition for certiorari, prohibition an /ana/us 7ith pra.er for a
restrainin0 orer an?or preli/inar. in9unction, petitioners )! )arr. (! Ro>ue,
,r!, et al!, suin0 as ta5pa.ers an concerne citi=ens, see: to nullif. responent
Co/elec6s a7ar of the 3212 Elections Auto/ation Pro9ect ;auto/ation pro9ect< to
the 9oint venture of Total "nfor/ation Mana0e/ent Corporation ;T"M< an
S/art/atic "nternational Corporation ;S/art/atic<
@1A
an to per/anentl. prohibit
the Co/elec, T"M an S/art/atic fro/ si0nin0 an?or i/ple/entin0 the
corresponin0 contract-a7ar!

B. Resolution
@3A
of ,ul. 1B, 3224, the Court irecte the responents as 7ell
as the Universit. of the Philippines ;UP< Co/puter Center, National Co/puter
Center ;NCC< an "nfor/ation Technolo0. 8ounation of the Philippines
;"nfotech, hereinafter< to sub/it their collective or separate co//ents to the
petition on or before ,ul. 3B, 3224! Before an. of the co//ents coul actuall. be
file, Att.! Pete $uirino-$uara sou0ht leave to intervene! "n another resolution,
the Court allo7e the intervention an a/itte the corresponin0 petition-in-
intervention!
@CA

On ,ul. 34, 3224, the Court hear the principal parties in oral ar0u/ents
7hich 7as follo7e b. the sub/ission of their an the resource persons6
instructive, albeit clashin0, /e/orana! The Senate, throu0h the Senate Presient,
7oul later 9oin the fra. via a Motion for (eave to "ntervene! "n a Resolution of
Au0ust 3D, 3224, the Court a/itte the Senate6s co//ent-in-intervention!

8ro/ the petition, the separate co//ents thereon, 7ith their respective
anne5es, an other pleain0s, as 7ell as fro/ a/issions urin0 the oral
ar0u/ents, the Court 0athers the follo7in0 facts#

On -ece/ber 33, 144E, Con0ress enacte Republic Act No! ;RA< FBCG
authori=in0 the aoption of an auto/ate election s.ste/ ;AES< in the Ma. 11,
144F national an local elections an on7ars! The 144F, 3221, an 322B national
an local polls, ho7ever, ca/e an 7ent but purel. /anual elections 7ere still the
orer of the a.! On ,anuar. 3C, 322E, the a/enator. RA 4CG4
@BA
7as passe
authori=in0 ane7 the Co/elec to use an AES! Of particular relevance are Sections
G an 12 of RA 4CG4HHori0inall. Secs! D an F, respectivel. of RA FBCG, as
a/eneHHeach efinin0 Co/elec6s specific /anates insofar as auto/ate
elections are concerne! The AES 7as not utili=e in the Ma. 12, 3222 elections,
as funs 7ere not appropriate for that purpose b. Con0ress an ue to ti/e
constraints!

RA 4CG4 calls for the creation of the Co/elec Avisor. Council
@DA
;CAC<!
CAC is to reco//en, a/on0 other functions, the /ost appropriate, applicable
an cost-effective technolo0. to be applie to the AES!
@GA
To be create b. Co/elec
too is the Technical Evaluation Co//ittee ;TEC<
@EA
7hich is tas:e to certif.,
throu0h an establishe international certification co//ittee, not later than three
/onths before the elections, b. cate0oricall. statin0 that the AES, inclusive of its
har7are an soft7are co/ponents, is operatin0 properl. an accuratel. base on
efine an ocu/ente stanars!
@FA


"n Au0ust 322F, Co/elec /ana0e to auto/ate the re0ional polls in the
Autono/ous Re0ion of Musli/ Minanao
@4A
;ARMM<, usin0 irect recorin0
electronics ;-RE< technolo0.
@12A
in the province of Ma0uinanaoI an the optical
/ar: reaer?recorin0 ;OMR< s.ste/, particularl. the Central Count Optical Scan
;CCOS<,
@11A
in the rest of ARMM!
@13A
Jhat scores haile as successful auto/ate
ARMM 322F elections pave the 7a. for Co/elec, 7ith so/e proin0 fro/
senators,
@1CA
to prepare for a nation7ie co/puteri=e run for the 3212
national?local polls, 7ith the /an. lessons learne fro/ the ARMM e5perience
influencin0, accorin0 to the NCC, the technolo0. selection for the 3212
auto/ate elections!
@1BA

Accorin0l., in earl. March 3224, the Co/elec release the Request for
Proposal ;RFP/, also :no7n as Terms of Reference ;TOR<, for the nation7ie
auto/ation of the votin0, countin0, trans/ission, consoliation an canvassin0 of
votes for the Ma. 12, 3212 S.nchroni=e National an (ocal Elections! Jhat is
referre to also in the R8P an other contract ocu/ents as the 3212 Elections
Auto/ation Pro9ect ;Auto/ation Pro9ect< consists of three elaborate co/ponents,
as follo7s#

C(0p(nen" )# Paper-Base AES!
@1DA
1-A! Election Mana0e/ent S.ste/
;EMS<I 1-B Precinct-Count Optic Scan 1PCOS/
@1GA
S.ste/ an 1-C!
Consoliation?Canvassin0 S.ste/ ;CCS<I

C(0p(nen" 2. Provision for Electronic Trans/ission of Election Results
usin0 Public Teleco//unications Net7or:I an

C(0p(nen" 3. Overall Pro9ect Mana0e/ent

An obviousl. to aress the possibilit. of s.ste/s failure, the R8P
re>uire intereste biers to sub/it, a/on0 other thin0s: a continuit. plan
@1EA
an
a bac:-up plan!
@1FA

Uner the t7o-envelope s.ste/ esi0ne uner the R8P,
@14A
each
participatin0 bier shall sub/it, as part of its bi, an Eligibility Envelope
@32A
that
shoulinter alia establish the bier6s eli0ibilit. to bi! On the other han, the
secon envelope, or the Bid Envelope itself, shall contain t7o envelopes that, in
turn, shall contain the technical proposal an the financial proposal, respectivel.!
@31A

Subse>uentl., the Co/elec Special Bis an A7ars Co//ittee ;SBAC<,
earlier constitute purposel. for the aforesai pro9ect, cause the publication in
ifferent ne7spapers of the Invitation to pply for Eligibility and to Bid
@33A
for the
procure/ent of 0oos an services to be use in the auto/ation pro9ect!
@3CA
Mean7hile, Con0ress enacte RA 4D3D appropriatin0 so/e PhP 11!C billion as
supple/ental bu0et for the Ma. 12, 3212 auto/ate national an local elections!

Of the ten ;12< invitation-responin0 consortia 7hich obtaine the bi
ocu/ents, onl. seven ;E< sub/itte seale applications for eli0ibilit. an
bis
@3BA
7hich, per Bi Bulletin No! 3B, 7ere to be opene on a pre-set ate,
follo7in0 the convenin0 of the pre-bi conference! Uner the R8P, a/on0 those
eli0ible to participate in the biin0 are /anufacturers, suppliers an?or
istributors for/in0 the/selves into a 9oint venture!

A !oint venture is efine as a
group of t"o or more manufacturers# suppliers and$or distributors t%at intend to be
!ointly and severally responsible or liable for a particular contract!
@3DA


A/on0 the sub/itte bis 7as that of the 9oint venture ;,+< of T"M an
S/art/atic, the for/er incorporate uner the Corporation Coe of
the Philippines! S/art/atic, on the other han, 7as or0ani=e uner the la7s
of Barbaos!
@3GA
8or a state a/ount, sai ,+ propose to unerta:e the 7hole
auto/ation pro9ect, inclusive of the eliver. of F3,322 PCOS /achines! After the
conclusion of the eli0ibilit. evaluation process, onl. three consortia
@3EA
7ere foun
an thus eclare as eli0ible! 8urther on, follo7in0 the openin0 of the passin0
biers6 Bid Envelope an evaluatin0 the technical an financial proposals therein
containe, the SBAC, per its Res! No! 24-221, s!-3224, eclare the above-state
bi of the ,+ of T"M-S/art/atic as the single complying calculated bid!
@3FA
As
re>uire b. the R8P, the bi envelope containe an outline of the 9oint venture6s
bac:-up an continuit. or contin0enc. plans,
@34A
in case of a s.ste/s brea:o7n or
an. such eventualit. 7hich shall result in the ela., obstruction or nonperfor/ance
of the electoral process!

After eclarin0 T"M-S/art/atic as the best co/pl.in0 bier, the SBAC
then irecte the 9oint venture to unerta:e post->ualification screenin0, an its
PCOS protot.pe /achinesHHthe S/ar/atic Auitable Electronic S.ste/ ;SAES<
1F22HHto uner0o en-to-en
@C2A
testin0 to eter/ine co/pliance 7ith the pre-set
criteria!

"n its Me/oranu/ of ,une 21, 3224, on the Sub9ect# &ystems Evaluation
Consolidated Report and &tatus Report on t%e Post'(ualification Evaluation
Procedures, the SBAC Technical Jor:in0 %roup ;TJ%< state that it 7as
unerta:in0 a B-a. ;Ma. 3E to Ma. C2, 3224< test evaluation of T"M an
S/art/atic6s propose PCOS pro9ect /achines! "ts conclusion# KThe e/o
s.ste/s presente PASSED all tests as re>uire in the 3G-ite/ criteria specifie in
the @R8PAL 7ith 122M accurac. ratin0!
@C1A
The TJ% also valiate the eli0ibilit.,
an technical an financial >ualifications of the T"M-S/art/atic 9oint venture!

On ,une 4, 3224, Co/elec, upon the reco//enation of its SBAC, the CAC
an other sta:eholers, issue Resolution No! ;Res!< FG2F
@C3A
authori=in0 the SBAC
to issue, sub9ect to 7ell-efine conitions, the notice of a7ar an notice to
procee in favor of the 7innin0 9oint venture!

Soon after, T"M 7rote Co/elec e5pressin0 its esire to >uit the ,+
partnership! "n ti/e, ho7ever, the parties 7ere able to patch up 7hat T"M earlier
escribe as irreconcilable ifferences bet7een partners!

Jhat follo7e 7as that T"M an S/art/atic, pursuant to the ,oint +enture
A0ree/ent ;,+A<,
@CCA
cause the incorporation of a 9oint venture corporation ;,+C<
that 7oul enter into a contract 7ith the Co/elec! On ,ul. F, 3224, the Securities
an E5chan0e Co//ission issue a certificate of incorporation in favor of
S/art/atic T"M Corporation! T7o a.s after, or on ,ul. 12, 3224, Co/elec an
S/art/atic T"M Corporation, as provier, e5ecute a contract
@CBA
for the lease of
0oos an services uner the contract for the contract a/ount of PhP
E,141,BFB,EC4!BF, pa.able as the K%oos an Services are elivere an?or
pro0ress is /ae in accorance @7ith pre-setA Scheule of Pa./ents!L
@CDA
On the
sa/e ate, a )otice to Proceed
@CGA
7as sent to, an receive b., S/art/atic T"M
Corporation!

Mean7hile, or on ,ul. 4, 3224, petitioners interpose the instant recourse
7hich, for all intents an purposes, i/pu0ns the valiit. an see:s to nullif. the
,ul. 12, 3224 Co/elec-S/art/atic-T"M Corporation auto/ation contract averte
to! A/on0 others, petitioners pra. that responents be per/anentl. en9oine fro/
i/ple/entin0 the auto/ation pro9ect on the sub/ission that#

PUB("C RESPON-ENTS COME(EC AN- COME(EC-SBAC
COMM"TTE- %RA+E ABUSE O8 -"SCRET"ON AMOUNT"N% TO (ACN
OR EOCESS O8 ,UR"S-"CT"ON "N AJAR-"N% T)E 3212 E(ECT"ONS
AUTOMAT"ON PRO,ECT TO PR"+ATE RESPON-ENTS T"M AN-
SMARTMAT"C 8OR T)E 8O((OJ"N% REASONS#

5 5 5 COME(EC -"- NOT CON-UCT AN' P"(OT TEST"N% O8 T)E
5 5 5 PCOS MAC)"NES O88ERE- B' PR"+ATE RESPON-ENTS
SMARTMAT"C AN- T"M, "N +"O(AT"ON O8 @RAA FBCG ;AS
AMEN-E- B' @RAA 4CG4<

T)E @PCOSA MAC)"NES @T)USA O88ERE- B' PR"+ATE
RESPON-ENTS 5 5 5 -O NOT SAT"S8' T)E *I)I*+* &,&TE*
CPBI-ITIE& SET B' @RAA NO! FBCG ;AS AMEN-E- B' @RAA
4CG4<!

PR"+ATE RESPON-ENTS 5 5 5 -"- NOT SUBM"T T)E RE$U"RE-
-OCUMENTS -UR"N% T)E B"--"N% PROCESS T)AT S)OU(-
ESTAB("S) T)E -UE EO"STENCE, COMPOS"T"ON, AN- SCOPE
O8 T)E"R ,O"NT +ENTURE, "N +"O(AT"ON O8 T)E SUPREME
COURT6S )O(-"N% "N I)./R*TI/) TEC0)/-/1,
./+)2TI/) /. T0E P0I-IPPI)E&# vs. C/*E-EC 31.R. )o.
456476# Jan. 47# 899:<!

T)ERE JAS NO ;-I2 ,O"NT +ENTURE A%REEMENT @,+AA
BETJEEN PR"+ATE RESPON-ENTS SMARTMAT"C AN-
T"M -UR"N% T)E B"--"N%, "N +"O(AT"ON O8 T)E SUPREME
COURT6S )O(-"N% "N I)./R*TI/) TEC0)/-/1,
./+)2TI/) /. T0E P0I-IPPI)E& vs. C/*E-EC 5 5 5 J)"C)
RE$U"RES A ,O"NT +ENTURE TO "NC(U-E A COP' O8 "TS @,+AA
-UR"N% T)E B"--"N%!


T)E A((E%E- ,O"NT +ENTURE COMPOSE- O8 PR"+ATE
RESPON-ENTS SMARTMAT"C AN- T"M, -OES NOT SAT"S8' T)E
SUPREME COURT6S -E8"N"T"ON O8 A K,O"NT +ENTUREL
"N I)./R*TI/) TEC0)/-/1, ./+)2TI/) /. T0E
P0I-IPPI)E& vs. C/*E-EC 5 5 5 J)"C) KRE$U"RES A
COMMUN"T' O8 "NTEREST "N T)E PER8ORMANCE O8 T)E
SUB,ECT MATTER!L


8ile as it 7as before contract si0nin0, the petition unerstanabl. i not
i/plea S/art/atic T"M Corporation, oubtless an inispensable part. to these
proceein0s, an incient that i not escape Co/elec6s notice!
@CEA

As a preli/inar. counterpoint, either or both public an private responents
>uestion the le0al stanin0 or locus standi of petitioners, notin0 in this re0ar that
the petition i not even raise an issue of transcenental i/portance, let alone a
constitutional >uestion!

As an aitional point, responents also ur0e the is/issal of the petition on
the 0roun of pre/aturit., petitioners havin0 faile to avail the/selves of the
other7ise /anator. built-in 0rievance /echanis/ uner Sec! DD in relation to
Sec! DF of RA 41FB, also :no7n as the 1overnment Procurement Reform ct, as
shall be iscusse shortl.!

PROCEDURAL GROUNDS

The Court is not ispose to is/iss the petition on proceural 0rouns
avance b. responents!

Locus Standi and Pe0a"4&"$

"t is true, as postulate, that to have stanin0, one /ust, as a rule, establish
havin0 suffere so/e actual or threatene in9ur. as a result of the alle0e ille0al
0overn/ent conuctI that the in9ur. is fairl. traceable to the challen0e actionI an
that the in9ur. is li:el. to be reresse b. a favorable action!
@CFA
The prescription
on stanin0, ho7ever, is a /atter of proceure! )ence, it /a. be rela5e, as the
Court has often rela5e the rule for non-traitional plaintiffs, li:e orinar. citi=ens
an ta5pa.ers, 7hen the public interest so re>uires, such as 7hen the /atter is of
transcenental i/portance, of overarchin0 si0nificance to societ., or of para/ount
public interest!
@C4A
As 7e 7rote in C%ave< v. PC11,
@B2A
7here issues of public
i/portance are presente, there is no necessit. to sho7 that the suitor has
e5perience or is in actual an0er of sufferin0 irect an personal in9ur. as the
re>uisite in9ur. is assu/e!

Petitioners6 counsel, 7hen >uerie, he0e on 7hat specific constitutional
proscriptions or concepts ha been infrin0e b. the a7ar of the sub9ect
auto/ation pro9ect to S/art/atic T"M Corporation, althou0h he 7as hear to sa.
that Kour ob!ection to t%e system is anc%ored on t%e Constitution itself a
violation @sicA of secrecy of voting and t%e sanctity of t%e ballot!L
@B1A
Petitioners
also epicte the coverin0 auto/ation contract as constitutin0 an abication b. the
Co/elec of its election-relate /anate uner the Constitution, 7hich is to enforce
an a/inister all la7s relative to the conuct of elections! Jorse still, accorin0
to the petitioners, the abication, 7ith its anti-u//. i/ension, is in favor of a
forei0n corporation that 7ill be proviin0 the har7are an soft7are re>uire/ents!
@B3A
An 7hen presse further, petitioners ca/e out 7ith the observation that, o7in0
in part to the sheer len0th of the ballot, the PCOS 7oul not co/pl. 7ith Art! +,
Sec! 3 of the Constitution
@BCA
prescribin0 secrec. of votin0 an sanctit. of the
ballot!
@BBA

There is no oubt in our /in, ho7ever, about the co/pellin0 si0nificance
an the transcenin0 public i/portance of the one issue unerpinnin0 this petition#
the successHHan the far-reachin0 0ri/ i/plications of the failureHHof the
nation7ie auto/ation pro9ect that 7ill be i/ple/ente via the challen0e
auto/ation contract!

The octrinal for/ulation /a. var., but the botto/ line is that the Court
/a. e5cept a particular case fro/ the operations of its rules 7hen the e/ans of
9ustice so re>uire!
@BDA
Put a bit ifferentl., rules of proceure are /erel. tools
esi0ne to facilitate the attain/ent of 9ustice!
@BGA
Accorin0l., technicalities an
proceural barriers shoul not be allo7e to stan in the 7a., if the ens of 9ustice
7oul not be subserve b. a ri0i aherence to the rules of proceure!
@BEA
This
postulate on proceural technicalities applies to /atters of locus standi an the
presentl. invo:e principle of hierarch. of courts, 7hich iscoura0es irect resort
to the Court if the esire reress is 7ithin the co/petence of lo7er courts to
0rant! The polic. on the hierarch. of courts, 7hich petitioners inee faile to
observe, is not an iron-cla rule! 8or inee the Court has full iscretionar. po7er
to ta:e co0ni=ance an assu/e 9urisiction of special civil actions
for certiorari an /ana/us file irectl. 7ith it for e5ceptionall. co/pellin0
reasons
@BFA
or if 7arrante b. the nature of the issues clearl. an specificall. raise
in the petition!
@B4A

The e5ceptions that 9ustif. a eviation fro/ the polic. on hierarch. appear
to obtain uner the pre/ises! The Court 7ill for the nonce thus turn a blin e.e to
the 9uicial structure intene, first an fore/ost, to provie an orerl.
ispensation of 9ustice!


H&ea56$ (7 C(4"!

At this sta0e, 7e shall ispose of another peripheral issue before plun0in0
into the core substantive issues tenere in this petition!

Responents conten that petitioners shoul have availe the/selves of the
other7ise /anator. protest /echanis/ set forth in Sections DD an DF of the
procure/ent la7 ;RA 41FB< an the counterpart provisions foun in its
"/ple/entin0 Rules an Re0ulations ;"RR<-A before see:in0 9uicial
re/e.! "nsofar as relevant, Sec! DD of RA 41FB provies that ecisions of the bis
an a7ars co//ittee ;BAC< in all sta0es of procure/ent /a. be proteste, via a
Kverified position paper,L to the hea of the procurin0 a0enc.! On the other han,
the succeein0 Sec! DF states that court action /a. be resorte to onl. after the
protest conte/plate in Sec! DD shall have been co/plete! Petitioners e5cept! As
ar0ue, the re>uire/ent to co/pl. 7ith the protest /echanis/, contrar. to 7hat
/a. have been su00este in Infotec%, is i/pose on the biers!
@D2A


Petitioners6 position is correct! As a /atter of co//on sense, onl. a bier
is entitle to receive a notice of the proteste BAC action! Onl. a losin0 bier
7oul be a00rieve b., an ergo 7oul have the personalit. to challen0e, such
action! This conclusion fins ae>uate support fro/ the ensuin0 provisions of the
aforesai "RR-A#

DD!3! The verifie position paper shall contain the follo7in0 ocu/ents#
a< The na/e of bierI
b< The office aress of the bier 5 5 5!



SUBSTANTIVE ISSUES

Je no7 turn to the central issues tenere in the petition 7hich, in ter/s of
sub9ect /atter, revolve aroun t7o concerns, vi=# ;1< the ,oint +enture A0ree/ent
;,+A< of S/art/atic an T"MI an ;3< the PCOS /achines to be use! Petitioners
veritabl. introuce another issue urin0 the oral ar0u/ents, as a/plifie in their
/e/oranu/, i.e! the constitutionalit. an statutor. fla7 of the auto/ation
contract itself! The petition-in-intervention confine itself to certain features of the
PCOS /achines!

T6e J(&n" Ven"4e A8ee0en". I"! E9&!"en5e and S4#0&!!&(n

The issue respectin0 the e5istence an sub/ission of the T"M-S/art/atic
,+A oes not re>uire an e5tene is>uisition, as repairin0 to the recors 7oul
reail. provie a satisfactor. ans7er! Je note in fact that the petitioners o not
appear to be earnestl. pressin0 the sai issue an./ore, as e/onstrate b. their
counsel6s practicall. cavalier iscussion thereof urin0 the oral ar0u/ent! Jhen
re/ine, for instance, of private responents6 insistence on havin0 in fact
sub/itte their ,+A ate April 3C, 3224, petitioners6 counsel respone as
follo7s# K=e >ne" your %onor t%at t%ere "as# in fact# a !oint venture agreement
filed. 0o"ever# because of t%e belated discovery t%at ?t%ere@ "ere irreconcilable
differences# "e t%en made a vie" t%at t%is !oint venture agreement "as a s%am# at
best pro formabecause it did not contain all t%e required stipulations in order to
evidence unity of interest 5 5 5!L
@D1A

"nee, the recors belie petitioners6 initial posture that T"M an
S/art/atic, as 9oint venture partners, i not inclue in their sub/itte eli0ibilit.
envelope a cop. of their ,+A! The SBAC6s Post (ualification Evaluation Report
3EligibilityA on T"M-S/art/atic, on pa0e 12, sho7s the follo7in0 entr.# K;alid
Joint ;enture greement# stating among t%ings# t%at t%e members are !ointly and
severally liable for t%e "%ole obligation# in case of !oint venture B 2ocuments
verified compliance!L
@D3A

Contrar. to 7hat the petitioners posit, the ul. notari=e ,+A, as couche,
e5plaine the nature an the li/ite purpose
@DCA
of the 9oint venture an e5pressl.
efine, a/on0 other thin0s, the co/position, scope, an the G2-B2 capital
structure of the a00roup/ent!
@DBA
The ,+A also contains provisions on the
/ana0e/ent
@DDA
an ivision of profits!
@DGA
Article C
@DEA
of the ,+A elineates the
respective participations an responsibilities of the 9oint venture partners in the
auto/ation pro9ect!

%iven the fore0oin0 perspective, the Court is at a loss to unerstan ho7
petitioners can assert that the S/art/atic-T"M consortiu/ has faile to prove its
9oint venture e5istence an?or to sub/it evience as 7oul enable the Co/elec to
:no7 such ite/s as 7ho it is ealin0 7ith, 7hich bet7een the partners has control
over the ecision-/a:in0 process, the a/ount of invest/ent to be contribute b.
each partner, the parties6 shares in the profits an li:e etails! )a petitioners onl.
bothere to unerta:e the usual ue ili0ence that co/es 7ith 0oo 9u0/ent an
e5a/ine the eli0ibilit. envelope of the S/art/atic-T"M 9oint venture, the. 7oul
have iscovere that their challen0e to an ar0u/ents a0ainst the 9oint venture an
its ,+A have reall. no factual basis!

"t /a. be, as petitioners observe, that the T"M-S/art/atic 9oint venture
re/aine an unincorporate a00roup/ent urin0 the bi-openin0 an evaluation
sta0es! "t ou0ht to be stresse, ho7ever, that the fact of non-incorporation 7as
7ithout a vitiatin0 effect on the valiit. of the tener offers! 8or the biin0
0roun rules, as spelle out pri/aril. in the R8P an the clarificator. bi bulletins,
oes not re>uire, for biin0 purposes, that there be an incorporation of the biin0
9oint ventures or consortiu/s! "n fact, Bi Bulletin Nos! 14 an 32 reco0ni=e the
e5istence an the acceptabilit. of proposals of unincorporate 9oint ventures! "n
response to a poser, for e5a/ple, re0arin0 the G2M 8ilipino o7nership
re>uire/ent in a 9oint venture arran0e/ent, the SBAC, in its Bi Bulletin No! 33,
state# KIn an unincorporated joint venture# determination of t%e required .ilipino
participation may be made by eCamining t%e terms and conditions of t%e ?J;@
and ot%er supporting financial documents submitted by t%e !oint venture!L
;E/phasis ours!< Petitioners, to be sure, have not sho7n that incorporation is part
of the pass?fail criteria use in eter/inin0 eli0ibilit..

Petitioners have /ae /uch of the Court6s rulin0 in Information Tec%nology
.oundation of t%e P%ilippines ?Infotec%@ v. Comelec,
@DFA
ar0uin0 in relation thereto
that the partnership of S/art/atic an T"M oes not /eet the Court6s efinition of
a !oint venture 7hich re>uires Kcommunity of interest in t%e performance of t%e
sub!ect matter.D

Petitioners6 invocation of Infotec% is utterl. /isplace! Albeit Infotec% an
this case are both about /oerni=in0 the election process an biin0 9oint
ventures, the relevant parallelis/ ens there! Cast as the. are a0ainst issi/ilar
factual /ilieu, one cannot plausibl. set Infotec% sie 7ith an conte5tuall. appl.
to this case theratio of Infotec%! Suffice it to elve on the /ost 0larin0 of
ifferences! "n Infotec%, the 7innin0 bi pertaine to the consortiu/ of Me0a
Pacific, a purporte 9oint venture! E5tant recors, ho7ever, o not sho7 the
for/ation of such 9oint venture, let alone its co/position! To borro7 fro/
the ponencia of then ,ustice, later Chief ,ustice, Arte/io Pan0aniban, Kt%ere is no
sign "%atsoever of any ?J;@# consortium agreement ?or@ memorandum
agreement 5 5 5 eCecuted among t%e members of t%e purported
consortium!L
@D4A
There 7as in fine no evience to sho7 that the alle0e 9oint
venture partners a0ree to constitute the/selves into a sin0le entit. soliaril.
responsible for the entiret. of the auto/ation contract! Unli:e the purporte Me0a
Pacific consortiu/ in Infotec%, the e5istence in this case of the biin0 9oint
venture of S/ar/atic an T"M is properl. ocu/ente an sprea all over the bi
ocu/ents! An to stress, T"M an S/art/atic, in their ,+A, une>uivocall. a0ree
bet7een the/selves to perfor/ their respective unerta:in0s! An over an be.on
their co//it/ents to each other, the. unertoo: to incorporate, if calle for b. the
biin0 results, a ,+C that shall be soliaril. liable 7ith the/ for an. actionable
breach of the auto/ation contract!

"n Infotec%, the Court chastise the Co/elec for ealin0 7ith an entit., the
full ientit. of 7hich the poll bo. :ne7 nothin0 about! Ta:in0 a cue fro/ this
holin0, petitioners ta0 the T"M-S/art/atic ,+A as fla7e an as one that 7oul
leave the Co/elec Khan0in0L for the non-inclusion, as /e/bers of the 9oint
venture, of three "T proviers! The three referre to are ,arltech "nternational, "nc!
;,arltech<, a subsiiar. of S/art/atic that /anufactures the S/art/atic votin0
/achinesI -o/inion +otin0 S.ste/s ;-o/ino<, the inventor of sai PCOS
/achinesI an 3%O Transportation S.ste/ Corporation ;3%O<, the subcontractor
responsible for the istribution of the PCOS /achines throu0hout the countr.!

Petitioners6 beef a0ainst the T"M-S/art/atic ,+A is untenable! 8irst off, the
Co/elec :no7s the ver. entities 7ho/ the. are ealin0 7ith, 7hich it can hol
soliar. liable uner the auto/ation contract, shoul there be contract violation!
Seconl., there is no re>uire/ent uner either RA FBCG, as a/ene, or the R8P,
that all the suppliers, /anufacturers or istributors involve in the transaction
shoul be part of the 9oint venture! On the contrar., the "nstruction to BiersHHas
petitioners the/selves a/it
@G2A
HHallo7s the bier to subcontract portions of the
0oos or services uner the auto/ation pro9ect!
@G1A

To i0ress a bit, petitioners have insiste on the non-e5istence of a bona
fide ,+A bet7een T"M an S/ar/atic! 8ailin0 to 0ain traction for their
inefensible posture, the. 7oul thrust on the Court the notion of an invali 9oint
venture ue to the non-inclusion of /ore co/panies in the e5istin0 T"M-
S/art/atic 9oint venture! The iron. is not lost on the Court!

This brin0s us to the t7in technical issues tenere herein bearin0 on the
PCOS /achines of S/art/atic!

At its /ost basic, the petition ascribes 0rave abuse of iscretion to the
Co/elec for, a/on0 other thin0s, a7arin0 the auto/ation pro9ect in violation of
RA FBCG, as a/ene! 8ollo7in0 their line, no pilot test of the PCOS technolo0.
S/art/atic-T"M offere has been unerta:enI hence, the Co/elec cannot conuct
a nation7ie auto/ation of the 3212 polls usin0 the /achines thus offere! )ence,
the contract a7ar to S/art/atic-T"M 7ith their unteste PCOS /achines violate
RA FBCG, as a/ene b. RA 4CG4, 7hich /anates that 7ith respect to the Ma.
3212 elections an on7ars, the s.ste/ procure /ust have been pilote in at least
13 areas referre to in Sec! G of RA FBCG, as a/ene! Jhat is /ore, petitioners
assert, private responents6 PCOS /achines o not satisf. the /ini/u/ s.ste/
capabilities set b. the sa/e la7 envisa0e to ensure transparent an creible
votin0, countin0 an canvassin0 of votes! An as earlier narrate, petitioners 7oul
subse>uentl. a the abication an0le in their bi to nullif. the auto/ation
contract!

P&:(" Te!"&n8 N(" Ne5e!!a$

-isa0reein0, as to be e5pecte, private responents /aintain that there is
nothin0 in the applicable la7 re>uirin0, as a pre-re>uisite for the 3212 election
auto/ation pro9ect a7ar, that the prevailin0 bier6s auto/ation s.ste/, the
PCOS in this case, be sub9ecte to pilot testin0! Co/elec echoes its co-
responents6 stance on pilot testin0, 7ith the ae observation that no7here in the
statutor. provision relie upon are the 7ors Kpilot testin0L use!
@G3A
The Senate6s
position an its supportin0 ar0u/ents /atch those of private responents!

The responents6 thesis on pilot testin0 an the lo0ic holin0 it to0ether are
7ell ta:en! There can be no ar0u/ent about the phrase Kpilot testL not bein0 foun
in the la7! But oes it necessaril. follo7 that a pilot test is absolutel. not
conte/plate in the la7P Je repair to the statutor. provision petitioners cite as
re>uirin0 a pilot run, referrin0 to Sec! G of RA FBCG, as a/ene b. RA 4CG4,
reain0 as follo7s#

Sec! D! ut%ority to use an utomated Election &ystem!- To carr. out the
above state-polic., the @Co/elecA, 5 5 5 is hereb. authori=e to use an
auto/ate election s.ste/ or s.ste/s in the sa/e election in ifferent provinces,
7hether paper-base or a irect recorin0 electronic election s.ste/ as it /a.
ee/ appropriate an practical for the process of votin0, countin0 of votes an
canvassin0?consoliation an trans/ittal of results of electoral
e5ercises# Provided, "6a" 7( "6e e84:a na"&(na: and :(5a: e:e5"&(n!, ;6&56
!6a:: #e 6e:d &00ed&a"e:$ a7"e "6e e77e5"&<&"$ (7 "6&! A5", "6e AES !6a:: #e
4!ed &n a" :ea!" ";( 6&86:$ 4#an&=ed 5&"&e! and ";( p(<&n5e! ea56 &n L4=(n,
V&!a$a!, and M&ndana( "( #e 56(!en #$ "6e >C(0e:e5?# Provided, furt%er, That
local 0overn/ent units 7hose officials have been the sub9ect of a/inistrative
char0es 7ithin si5teen ;1G< /onth prior to the Ma. 1B, 322E elections shall not be
chosen! Provided# finally, That no area shall be chosen 7ithout the consent of the
San00unian of the local 0overn/ent unit concerne! The ter/ local 0overn/ent
unit as use in this provision shall refer to a hi0hl. urbani=e cit. or province! "n
succeein0 re0ular national or local elections, the AES shall be i/ple/ente!
;E/phasis an unerscorin0 ae!<

RA 4CG4, 7hich envisa0es an AES, be it paper-base or irect-recorin0
electronic, too: effect in the secon 7ee: of 8ebruar. 322E or thereabout!
@GCA
The
Kregular national and local electionsD referre to after the Keffectivity of t%is ctL
can be no other than the Ma. 322E re0ular elections, urin0 7hich ti/e the AES
shall, as the la7 is 7ore, be use in at least t7o hi0hl. urbani=e cities an
provinces in (u=on, +isa.as an Minanao! The Court ta:es 9uicial notice that the
Ma. 322E elections i not eplo. AES, evientl. ue to the /i5 of ti/e an
funin0 constraints!
To the petitioners, the unerscore portion of the afore>uote Sec! G of RA
FBCG is the pilot-testin0 provision that Co/elec faile to observe!

Je are not persuae!

8ro/ the practical vie7point, the pilot testin0 of the technolo0. in >uestion
in an actual, scheule electoral e5ercise uner harsh conitions 7oul have been
the ieal nor/ in co/puteri=e s.ste/ i/ple/entation! The unerscore proviso
of Sec! G of RA FBCG is not, ho7ever, an authorit. for the proposition that the pilot
testin0 of the PCOS in the 322E national elections in the areas thus specifie is an
absolute /ust for the /achines6 use in the 3212 national?local elections! The Court
can concee that sai proviso, 7ith respect to the Ma. 322E elections, co//ans
the Co/elec to auto/ate in at least 13 efine areas of the countr.! But the botto/
line is that the re>uire 322E auto/ation, be it vie7e in the concept of a pilot test
or not, is not a /anator. re>uire/ent for the choice of s.ste/ in, or a prere>uisite
for, the full auto/ation of the Ma. 3212 elections!

As /a. be note, Sec! G of RA FBCG /a. be bro:en into three essential
parts, the first parta:in0 of the nature of a 0eneral polic. eclaration# that Co/elec
is authori=e to auto/ate the entire elections! The secon part states that for the
re0ular national an local elections that shall be hel in Ma. 322E, Co/elec shall
use the AES, 7ith an option, ho7ever, to unerta:e auto/ation, re0arless of the
technolo0. to be selecte, in a li/ite area or, to be /ore precise, in at least t7o
hi0hl. urbani=e cities an t7o provinces each in (u=on, +isa.as, an
Minanao to be chosen b. the Co/elec! On the other han, the last part,
phrase sans reference to the Ma. 322E elections, co//ans
thus# K?I@n succeeding regular national or local elections# t%e ?automated election
system@ s%all be implemented!L Ta:en in its proper conte5t, the last part is
inicative of the le0islative intent for the Ma. 3212 electoral e5ercise to be full.
auto/ate, re0arless of 7hether or not pilot testin0 7as run in the 322E polls!

To ar0ue that pilot testin0 is a conition preceent to a full auto/ation in
3212 7oul oubtless uner/ine the purpose of RA 4CG4! 8or, as aptl. observe
urin0 the oral ar0u/ents, if there 7as no political e5ercise in Ma. 322E, the
countr. 7oul theoreticall. be barre forever fro/ havin0 full auto/ation!

Sec! G of the a/ene RA FBCG, as couche, therefore, un/ista:abl.
conve.s the iea of unconitional full auto/ation in the 3212 elections! A
construal /a:in0 pilot testin0 of the AES a prere>uisite or conition sine qua
non to puttin0 the s.ste/ in operation in the 3212 elections is tanta/ount to
reain0 into sai section so/ethin0 be.on the clear intention of Con0ress, as
e5presse in the provision itself! Je reprouce 7ith approval the follo7in0
e5cerpts fro/ the co//ent of the Senate itself#

The plain 7orin0s of RA 4CG4 ;that a/ene RA FBCG< co//ans that
the 3212 elections shall be full. auto/ate, an such full auto/ation is not
conitione on Kpilot testin0L in the Ma. 322E elections! Con0ress /erel. 0ave
COME(EC the fle5ibilit. to partiall. use the AES in so/e parts of the countr.
for the Ma. 322E elections!
@GBA

(est it be overloo:e, an AES is not s.non./ous to an ou0ht not to be
confuse 7ith the PCOS! Sec! 3;a< of RA FBCG, as a/ene, efines an AES as Ka
system using appropriate tec%nology "%ic% %as been demonstrated in t%e voting#
counting# consolidating# canvassing and transmission of election results# and ot%er
electoral processes!L On the other han, PCOS refers to a technolo0. 7herein an
optical ballot scanner, into 7hich optical scan paper ballots /ar:e b. han b. the
voter are inserte to be counte!
@GDA
Jhat /a. reasonabl. be euce fro/ these
efinitions is that PCOS is /erel. one of several auto/ate votin0, countin0 or
canvassin0 technolo0ies co/in0 7ithin the ter/ AES, i/pl.in0 in turn that the
auto/ate election s.ste/ or technolo0. that the Co/elec shall aopt in future
elections nee not, as a /atter of /anator. arran0e/ent, be pilote in the
averte t7o hi0hl. urbani=e cities an provinces!

"n perspective, 7hat /a. be ta:en as /anator. prere>uisite for the full
auto/ation of the 3212 re0ular national? local elections is that the s.ste/ to be
procure for that e5ercise be a technolo0. teste either here or abroa! The ensuin0
Section F of RA FBCG, as a/ene, sa.s so!

SEC 13! Procurement of Equipment and *aterials!H To achieve the
purpose of this Act, the Co//ission is authori=e to procure, 555, b. purchase,
lease, rent or other for/s of ac>uisition, supplies, e>uip/ent, /aterials, soft7are,
facilities, an other services, fro/ local or forei0n sources 555! %&"6 e!pe5" "(
"6e Ma$ )@, 2@)@ e:e5"&(n! and !455eed&n8 e:e5"(a: e9e5&!e!, "6e !$!"e0
p(54ed 04!" 6a<e de0(n!"a"ed 5apa#&:&"$ and #een !455e!!74::$ 4!ed &n
p&( e:e5"(a: e9e5&!e 6ee ( a#(ad! Pa"&5&pa"&(n &n "6e 2@@A p&:("
e9e5&!e !6a:: n(" #e 5(n5:4!&<e (7 "6e !$!"e0B! 7&"ne!!. ;E/phasis supplie<!

Jhile the unerscore portion /a:es reference to a K322E pilot e5ercise,L
7hat it reall. e5acts is that, for the auto/ation of the Ma. 3212 an subse>uent
elections, the PCOS or an. AES to be procure /ust have e/onstrate its
capabilit. an success in either a local or a forei0n electoral e5ercise! An as
e5pressl. eclare b. the provision, participation in the 322E electoral e5ercise is
not a 0uarantee nor is it conclusive of the s.ste/6s fitness! "n this re0ar, the Court
is incline to a0ree 7ith private responents6 interpretation of the unerscore
portion in >uestion# KThe provision clearl. conve.s that the @AESA to be use in
the 3212 elections nee not have been use in the 322E elections, an that the
e/onstration of its capabilit. nee not be in a previous Philippine
election! -e/onstration of the success an capabilit. of the PCOS /a. be in an
electoral e5ercise in a forei0n 9urisiction!L
@GGA
As eter/ine b. the Co/elec, the
PCOS s.ste/ ha been successfull. eplo.e in previous electoral e5ercises in
forei0n countries, such as Ontario, CanaaI an Ne7 'or:, USA,
@GEA
albeit
S/art/atic 7as not necessaril. the s.ste/ provier! But then, RA 4CG4 oes not
call for the 7innin0 bier of the 3212 auto/ation pro9ect an the eplo.in0
entit.?provier in the forei0n electoral e5ercise to be one an the sa/e entit.!
Neither oes the la7 incientall. re>uire that the s.ste/ be first use in an
archipela0ic countr. or 7ith a topo0raph. or a votin0 population si/ilar to or
appro5i/atin0 that of the Philippines!

At an. event, an. lin0erin0 oubt on the issue of 7hether or not full
auto/ation of the 3212 re0ular elections can valil. procee 7ithout a pilot run of
the AES shoul be put to rest 7ith the enact/ent in March 3224 of RA 4D3D,
@GFA
in
7hich Con0ress appropriate PhP 11!C21 billion to auto/ate the 3212 elections,
sub9ect to co/pliance 7ith the transparenc. an accurac. re>uire/ents in selectin0
the relevant technolo0. of the /achines, thus#

Sec! 3! +se of .unds!H 5 5 5 Provided# %o"ever, That isburse/ent of the
a/ounts herein appropriate or an. part thereof shall be authori=e onl. in strict
co/pliance 7ith the Constitution, the provisions of @RA? N(. C3-C an other
election la7s incorporate in sai Act as to ensure the conuct of a free, orerl.,
clean, honest an creible election an shall aopt such /easures that 7ill
0uarant. transparenc. an accurac. in the selection of the relevant technolo0. of
the /achines to be use on Ma. 12, 3212 auto/ate national an local elections!
;E/phasis ae!<

"t /a. safel. be assu/e that Con0ress approve the bill that eventuall.
beca/e RA 4D3D, full. a7are that the s.ste/ usin0 the PCOS /achines 7ere not
pilote in the 322E electoral e5ercise! The enact/ent of RA 4D3D is to us a
co/pellin0 inication that it 7as never Con0ress6 intent to /a:e the pilot testin0 of
a particular auto/ate election s.ste/ in the 322E elections a conition preceent
to its use or a7ar of the 3212 Auto/ation Pro9ect! The co//ent-in-intervention
of the Senate sa.s as /uch!

8urther, the hi0hl. char0e issue of 7hether or not the 322F ARMM
electionsHHcoverin0, as NCC observe, three conflict-rien islan provincesHH
/a. be treate as substantial co/pliance 7ith the Kpilot testL re>uire/ent /ust be
ans7ere in the affir/ative! No less than Senator Richar ,! %oron hi/self, the
author of the la7, sai that Kthe s.ste/ has been trie an teste in the ARMM
elections last .ear, so 7e have to procee 7ith the total i/ple/entation of the
la7!L
@G4A

Je note, thou0h, the conflictin0 vie7s of the NCC
@E2A
an "T8P
@E1A
on the
/atter! Suffice it to state at this 9uncture that the s.ste/ use in the 322F ARMM
election e5ercise bears, as petitioners to an e5tent 0ru0in0l. a/it,
@E3A
a si/ilarit.
7ith the PCOS! The follo7in0, lifte fro/ the Co/elec6s co//ent, is to us a fair
escription of ho7 the t7o s.ste/s ;PCOS an CCOS< 7or: an 7here the
ifference lies#

555 the elections in the @ARMMA utili=e the Countin0 Center Optical
Scan ;CCOS<, a s.ste/ 7hich uses the Optical Mar: Reaer ;OMR<, the sa/e
technolo0. as the PCOS!

Uner the CCOS, the voters cast their votes b. shain0 or /ar:in0 the
circles in the paper ballots 7hich correspone to the na/es of their chosen
caniates @li:e in PCOSA! Thereafter, the ballot bo5es 7ere brou0ht to
the countin0 centers 7here the. 7ere scanne, counte an canvasse!

555 Uner the PCOS, the countin0, consoliation an canvassin0 of the
votes are one at the precinct level! The election results at the precincts are then
electronicall. trans/itte to the ne5t level, an so on! 555 PCOS ispenses 7ith
the ph.sical transportation of ballot bo5es fro/ the precincts to the
countin0 centers!
@ECA


Moreover, it has been propose that a partial auto/ation be i/ple/ente for
the Ma. 3212 elections in accorance 7ith Section D of RA FBCG, as a/ene b.
RA 4CG4 instea of full auto/ation! The Court cannot a0ree as such proposition
has no basis in la7! Section D, as 7ore, oes not allo7 for partial auto/ation! "n
fact, Section D clearl. states that Kthe AES !6a:: be i/ple/ente nation7ie!L
@EBA
"t
behooves this Court to follo7 the letter an intent of the la7 for full auto/ation in
the Ma. 3212 elections!

PCOS Mee"! M&n&040 Capa#&:&"&e! S"andad!

As another 0roun for the nullification of the auto/ation contract,
petitioners posit the vie7 that the PCOS /achines o not satisf. the /ini/u/
s.ste/ capabilities prescribe b. RA FBCG, as a/ene! To a specific point, the.
su00est that the PCOS s.ste/ offere an accepte lac:s the features that 7oul
assure accurac. in the recorin0 an reain0 of votes, as 7ell as in the tabulation,
consoliation?canvassin0, electronic trans/ission, stora0e results an accurate
ballot countin0!
@EDA
"n this particular re0ar, petitioners alle0e that, base on
S/art/atic6s 7ebsite, the PCOS has a /ar0in of error of fro/ 3M to 12M, 7a.
be.on that of the re>uire 44!44M accurac. in the countin0 of votes!
@EGA

The /ini/u/ s.ste/ capabilities provision cite is Sec! E of RA FBCG, as
a/ene, an the /issin0 features referre to b. petitioners are pars! ;b< an
;9<! "n full, Sec! E of RA FBCG, as a/ene, reas#

SEC! G! *inimum &ystem Capabilities! - The auto/ate election s.ste/
/ust at least have the follo7in0 functional capabilities#

;a< Ae>uate securit. a0ainst unauthori=e accessI
;b< Accurac. in recorin0 an reain0 of votes as 7ell as in the
tabulation, consoliation?canvassin0, electronic trans/ission, an
stora0e of resultsI
;c< Error recover. in case of non-catastrophic failure of eviceI
;< S.ste/ inte0rit. 7hich ensures ph.sical stabilit. an functionin0 of
the vote recorin0 an countin0 processI
;e< Provision for voter verifie paper auit trailI
;f< S.ste/ auitabilit. 7hich provies supportin0 ocu/entation for
verif.in0 the correctness of reporte election resultsI
;0< An election /ana0e/ent s.ste/ for preparin0 ballots an pro0ra/s
for use in the castin0 an countin0 of votes an to consoliate, report
an ispla. election result in the shortest ti/e possibleI
;h< Accessibilit. to illiterates an isable votersI
;i< +ote tabulatin0 pro0ra/ for election, referenu/ or plebisciteI
;9< Accurate ballot countersI
;:< -ata retention provisionI
;l< Provie for the safe:eepin0, storin0 an archivin0 of ph.sical or paper
resource use in the election processI
;/< Utili=e or 0enerate official ballots as herein efineI
;a< Provie the voter a s.ste/ of verification to fin out 7hether or not
the /achine has re0istere his choiceI an
;o< Confi0ure access control for sensitive s.ste/ ata an function!

"n the procure/ent of this s.ste/, the Co//ission shall evelop an
aopt an evaluation s.ste/ to ascertain that the above /ini/u/ s.ste/
capabilities are /et! The evaluation s.ste/ shall be evelope 7ith the assistance
of an avisor. council!

8ro/ the recors before us, the Court is fairl. satisfie that the Co/elec has
aopte a ri0i technical evaluation /echanis/, a set of 3G-ite/?chec: list criteria,
as 7ill be enu/erate shortl., to ensure co/pliance 7ith the above /ini/u/
s.ste/s capabilities!

The SBAC Me/oranu/
@EEA
of ,une 2C, 3224, as approve b. Co/elec Res!
FG2F,
@EFA
cate0oricall. state that the SBAC-TJ% sub/itte its report that
T"M?S/art/atic6s propose s.ste/s an /achines PASSE- all the en-to-en
e/o tests usin0 the afore/entione 3G-ite/ criteria, inclusive of the accurac.
ratin0 test of at least 44!4DDM! As appearin0 in the SBAC-TJ% report, the
corresponin0 ans7ers?re/ar:s to each of the 3G iniviual ite/s are as herein
inicate#
@E4A

ITEM
RE$U"REMENT
REMARN?-ESCR"PT"ON
1 -oes the s.ste/ allo7 /anual feein0
of a ballot into the PCOS /achineP
'es! The propose PCOS /achine
accepte the test ballots 7hich 7ere
/anuall. fe one at a ti/e!
3 -oes the s.ste/ scan a ballot sheet at
the spee of at least 3!ED inches per
seconP
'es! A C2-inch ballot 7as use in this test!
Scannin0 the C2-inch ballot too: 3!E
secons, 7hich translate to 11!11inches
per secon!
C "s the s.ste/ able to capture an store
in an encr.pte for/at the i0ital
i/a0es of the ballot for at least 3,222
ballot sies ;1,222 ballots, 7ith bac: to
bac: printin0<P
'es the s.ste/ capture the i/a0es of the
1,222 ballots in encr.pte for/at! Each of
the 1,222 i/a0es files containe the
i/a0es of the front an bac: sies of the
ballot, totalin0 to 3,222 ballot sie!

To verif. the capture ballot i/a0es,
ecr.pte copies of the encr.pte files
7ere also provie! The sa/e 7ere foun
to be i0iti=e representations of the
ballots cast!
B "s the s.ste/ a full. inte0rate sin0le
evice as escribe in ite/ no! B of
Co/ponent 1-BP
'es! The propose PCOS is a full.
inte0rate sin0le evice, 7ith built-in
printer an built-in ata co//unications
ports ;Ethernet an USB<!
D -oes the s.ste/ have a scannin0
resolution of at least 322 piP
'es! A portion of a fille up /ar:e oval
7as blo7n up usin0 i/a0e eitor soft7are
to reveal the nu/ber of ots per inch! The
sa/ple i/a0e sho7e 322 pi!

8ile properties of the ecr.pte i/a0e file
also reveale 322 pi!
G -oes the s.ste/ scan in 0ra.scaleP 'es! C2 shaes of 0ra. 7ere scanne in
the test PCOS /achine, 32 of 7hich 7ere
re>uire, e5ceein0 the re>uire B-bit?1G
levels of 0ra. as specifie in the Bi
Bulletin No! 14!
E -oes the s.ste/ re>uire authori=ation
an authentication of all operators, such
as, but not li/ite to, userna/es an
pass7ors, 7ith /ultiple user access
'es! The s.ste/ re>uire the use of a
securit. :e. 7ith ifferent sets
of pass7ors?P"Ns for
A/inistrator an Operator users!
levelsP
F -oes the s.ste/ have an electronic
ispla.P
'es! The PCOS /achine /a:es use of an
(C- ispla. to sho7 infor/ation#

if a ballot /a. be inserte into
the /achineI
if a ballot is bein0 processeI if a
ballot is bein0 re9ecteI
on other instructions an
infor/ation to the voter?operator!
4 -oes the s.ste/ e/plo. error hanlin0
proceures, incluin0, but not li/ite
to, the use of error pro/pts an other
relate instructionsP
'es! The PCOS sho7e error /essa0es on
its screen 7henever a ballot is re9ecte
b. the /achine an 0ives instructions to
the voter on 7hat to o ne5t, or 7hen
there 7as a ballot 9a/ error!
12 -oes the s.ste/ count the voter6s vote
as /ar:e on the ballot 7ith an
accurac. ratin0 of at least 44!44DMP
'es! The t7o rouns of tests 7ere
conucte for this test usin0 onl. vali
/ar:s?shaes on the ballots! 32,222 /ar:s
7ere re>uire to co/plete this test, 7ith
onl. one ;1< allo7able reain0 error!

G3D ballots 7ith C3 /ar:s each 7ere use
for this test! -urin0 the co/parison of the
PCOS-0enerate results 7ith the
/anuall. prepare?preeter/ine results,
it 7as foun out that there 7ere seven ;E<
/ar:s 7hich 7ere inavertentl. /isse
out urin0 ballot preparation b. the TJ%!
Althou0h the PCOS-0enerate results
turne out to be 122M accurate, the
32,222-/ar: 7as not /et thereb.
re>uirin0 the test to be repeate!

To prepare for other possible /isse out
/ar:s,GD2 ballots 7ith ;32,F22 /ar:s<
7ere use for the ne5t roun of test,
7hich also .iele 122M accurac.!
11 -oes the s.ste/ etect an re9ect fa:e
or spurious, an previousl. scanne
ballotsP
'es! This test /ae use of one ;1<
photocopie ballot an one ;1< Kre-
createL ballot! Both 7ere re9ecte b. the
PCOS!
13 -oes the s.ste/ scan both sies of a
ballot an in an. orientation in one
passP
'es! 8our ;B< ballots 7ith vali /ar:s
7ere fe into the PCOS /achine in the
four ;B< portrait orientations specifie in
Bi Bulletin No! B ;either bac: or front,
upsie o7n or ri0ht sie up<, an all
7ere accuratel. capture!
1C -oes the s.ste/ have necessar.
safe0uars to eter/ine the authenticit.
of a ballot, such as, but not li/ite to,
the use of bar coes, holo0ra/s, color
shiftin0 in:, /icro printin0, to be
provie on the ballot, 7hich can be
reco0ni=e b. the s.ste/P
'es! The s.ste/ 7as able to reco0ni=e if
the securit. features on the ballot are
K/issin0L!

Asie fro/ the test on the fa:e or
spurious ballots ;"te/ No! 11<, three ;C<
test ballots 7ith ta/pere bar coes an
ti/in0 /ar:s 7ere use an 7ere all
re9ecte b. the PCOS /achine!

The photocopie ballot in the test for "te/
No! 11 7as not able to replicate the U+
in: pattern on top portion of the ballot
causin0 the re9ection of the ballot!
1B Are the na/es of the caniates pre-
printe on the ballotP
'es! The T7o sa/ple test ballots of
ifferent len0ths 7ere provie# one
;1< 7as 1B inches lon0 7hile the
other 7as C2 inches lon0! Both 7ere
F!D inches 7ie!

The first sho7e 12F pre-printe
caniate na/es for the fourteen
;1B< contests?positions, incluin0
t7o ;3< surve. >uestions on 0ener
an a0e 0roup, an a plebiscite
>uestion!

The other sho7e G24 pre-printe
caniate na/es, also for fourteen
;1B< positions incluin0 three ;C<
surve. >uestions!
1D -oes each sie of the ballot sheet
acco//oate at least C22 na/es of
caniates 7ith a /ini/u/ font si=e of
12, in aition to other /anator.
infor/ation re>uire b. la7P
'es! The C2-inch ballot, 7hich 7as use
to test "te/ No! 3, containe C24 na/es
for the national positions an C22 na/es
for local positions! The total pre-printe
na/es on the ballot totale G24!

This t.pe of test ballot 7as also use
for test votin0 b. the public,
incluin0 /e/bers of the /eia!

Arial Narro7, font si=e 12, 7as use in
the printin0 of the caniate na/es!
1G -oes the s.ste/ reco0ni=e full shae
/ar:s on the appropriate space on the
'es! The ballots use for the accurac. test
;"te/ No! 12<, 7hich /ae use of full
ballot opposite the na/e of the
caniate to be vote forP
shae /ar:s, 7ere also use in this test
an 7ere accuratel. reco0ni=e b. the
PCOS /achine!
1E -oes the s.ste/ reco0ni=e partial shae
/ar:s on the appropriate space on the
ballot opposite the na/e of the
caniate to be vote forP
'es! 8our ;B< test ballots 7ere use 7ith
one ;1< /ar: each per ballot sho7in0 the
follo7in0 pencil /ar:s#

top half shaeI
botto/ half shaeI
left half shaeI an
ri0ht half shae

These partial shae /ar:s 7ere all
reco0ni=e b. the PCOS /achine
1F -oes the s.ste/ reco0ni=e chec:
;</ar:s on the appropriate space on
the ballot opposite the na/e of the
caniate to be vote forP
'es! One ;1< test ballot 7ith one chec:
;< /ar:, usin0 a pencil, 7as use for
this test!

The /ar: 7as reco0ni=e successfull.!
14 -oes the s.ste/ reco0ni=e 5 /ar:s on
the appropriate space on the ballot
opposite the na/e of the caniate to be
vote forP
'es! One ;1< test ballot 7ith one 5 /ar:,
usin0 a pencil, 7as use for this test!

The /ar: 7as reco0ni=e successfull.!
32 -oes the s.ste/ reco0ni=e both pencil
an in: /ar:s on the ballotP
'es! The 1222 ballots use in the accurac.
test ;"te/ No! 12< 7ere /ar:e usin0 the
propose /ar:in0 pen b. the bier!

A separate ballot 7ith one ;1< pencil /ar:
7as also teste! This /ar: 7as
also reco0ni=e b. the PCOS /achine!
Moreover, the tests for "te/s No! 1E, 1F
an 14 7ere /ae usin0 pencil /ar:s on
the ballots!
31 "n a si/ulation of a s.ste/ shut o7n,
oes the s.ste/ have error recover.
featuresP
'es! 8ive ;D< ballots 7ere use in this test!
The po7er cor 7as pulle fro/ the
PCOS 7hile the C
r
ballot 7as in the
/ile of the scannin0 proceure, such
that it 7as left Khan0in0L in the ballot
reaer!

After resu/ption of re0ular po7er suppl.,
the PCOS /achine 7as able to
restart successfull. 7ith notification to the
operator that there 7ere t7o ;3< ballots
alrea. cast in the /achine! The
Khan0in0L C
r
ballot 7as returne to the
operator an 7as able to be re-fe into the
PCOS /achine! The /ar:s on all five ;D<
7ere all accuratel. reco0ni=e!

33 -oes the s.ste/ have trans/ission an
consoliation?canvassin0 capabilitiesP
'es! The PCOS 7as able to trans/it to the
CCS urin0 the en-to-en e/onstration
usin0 %(OBE prepai "nternet :it!
3C -oes the s.ste/ 0enerate a bac:up
cop. of the 0enerate reports, in a
re/ovable ata stora0e eviceP
'es! The PCOS saves a bac:up cop. of
the ERs, ballot i/a0es, statistical report
an auit lo0 into a Co/pact 8lash ;C8<
Car!
3B -oes the s.ste/ have alternative po7er
sources, 7hich 7ill enable it to full.
operate for at least 13 hoursP
'es! A 13 bolt 1FA) batter. lea aci 7as
use in this test! The initial test ha to be
repeate ue to a short circuit, after seven
;E< hours fro/ start-up 7ithout ballot
scannin0! This 7as e5plaine b. T"M-
S/art/atic to be cause b. non-
co/patible 7irin0 of the batter. to the
PCOS! A s/aller 7ire than 7hat is
re>uire 7as inavertentl. use, li:enin0
the situation to incorrect 7irin0 of a car
batter.! T7o ;3< COME(EC electricians
7ere calle to confir/ T"M-S/art/atic6s
e5planation! The PCOS /achine 7as
connecte to re0ular po7er an starte
successfull.! The follo7in0 a., the Kre-
testL 7as co/plete in 13 hours an B2
/inutes 555 4FB ballots 7ere fe into the
/achine! The ER, as 0enerate b. the
PCOS 7as co/pare 7ith preeter/ine
result, sho7e 122M accurac.!
3D "s the s.ste/ capable of 0eneratin0 an
printin0 reportsP
'es! The PCOS prints reports via its built-
in printer 7hich inclues#
1! "nitiali=ation ReportI 3! Election
Returns ;ER<I C! PCOS Statistical ReportI
B! Auit (o0!
3G -i the bier successfull.
e/onstrateEMS, votin0 countin0,
consoliation?canvassin0 an
trans/issionP
'es! An en-to-en e/onstration of all
propose s.ste/s 7as presente coverin0#
i/portin0 of election ata into the EMSI
creation of election confi0uration ata for
the PCOS an the CCS usin0 EMSI
creation of ballot faces usin0 EMSI
confi0urin0 the PCOS an the CCS usin0
the EMS-0enerate election confi0uration
fileI initiali=ation, operation, 0eneration of
reports an bac:up usin0 the PCOSI
electronic trans/ission of results to the#
@1A fro/ the PCOS to cit.?/unicipal CCS
an the central server! @3A fro/ the
cit.?/unicipal CCS to the provincial
CCS! @CA fro/ the provincial CCS to the
national CCSI receipt an canvass of
trans/itte results# @1A b. the
cit.?/unicipal CCS fro/ the PCOS! @3A
b. the provincial CCS fro/ the
cit.?/unicipal CCS! @CA b. the national
CCS fro/ the provincial CCSI receipt of
the trans/ittal results b. the central server
fro/ the PCOS!

%iven the fore0oin0 an absent e/pirical evience to the contrar., the
Court, presu/in0 re0ularit. in the perfor/ance of re0ular uties, ta:es the e/o-
testin0 thus conucte b. SBAC-TJ% as a reflection of the capabilit. of the
PCOS /achines, althou0h the tests, as Co/elec a/its,
@F2A
7ere one literall. in
the Palacio del 1overnador builin0, 7here a roo/ therein si/ulate a to7n, the
a9oinin0 roo/ a cit., etc! Perusin0 the R8P, ho7ever, the real 7orth of the PCOS
s.ste/ an the /achines 7ill of course co/e after the. shall have been sub9ecte
to the 0a/ut of acceptance tests e5pressl. specifie in the R8P, na/el., the lab
test, fiel test, /oc: election test, trans/ission test an, lastl., the final test an
sealin0 proceure of all PCOS an CCS units usin0 the actual Election -a.
/achine confi0uration!
@F1A


Apropos the countin0-accurac. feature of the PCOS /achines, petitioners
no less i/pliel. a/it that the 7eb pa0e the. appene to their petition, sho7in0
a 3M to 12M failin0 rate, is no lon0er current!
@F3A
An if the. bothere to e5a/ine
the current 7ebsite of S/art/atic specificall. ealin0 7ith its SAES 1F22, the
PCOS s.ste/ it offere, the. 7oul have reail. seen that the avertise accurac.
ratin0 is over K44!44444M!L
@FCA
Moreover, a careful scrutin. of the ol 7ebpa0e of
S/ar/atic reveals that the 3M to 12M failure rate applie to Koptical scannersL an
not to SAES! 'et the sa/e pa0e iscloses that the SAES has K122ML accurac.!
Clearl., the alle0e 3M to 12M failin0 rate is no7 irrelevant an the Court nee not
belabor this an the e>uall. irrelevant estoppel principle petitioners i/pose on us!

"ntervenor Cuara6s concern relates to the auitabilit. of the election results!
"n this re0ar, it /a. suffice to point out that PCOS, bein0 a paper-base
technolo0., affors auit since the voter 7oul be able, if nee be, to verif. if the
/achine ha scanne, recore an counte his vote properl.! Moreover, it shoul
also be note that the PCOS /achine contains an (C- screen, one that can be
pro0ra//e or confi0ure to ispla. to the voter his votes as rea b. the
/achine!
@FBA

N( A#d&5a"&(n (7 C(0e:e5B! Manda"e and Re!p(n!&#&:"$

As a final /ain point, petitioners 7oul have the Co/elec-S/art/atic-T"M
Corporation auto/ation contract nullifie since, in violation of the Constitution, it
constitutes a 7holesale abication of the poll bo.6s constitutional /anate for
election la7 enforce/ent! On top of this perceive aberration, the /echanis/ of
the PCOS /achines 7oul infrin0e the constitutional ri0ht of the people to the
secrec. of the ballot 7hich, accorin0 to the petitioners, is provie in Sec! 3, Art!
+ of the Constitution!
@FDA


The above contention is not 7ell ta:en!

The first function of the Co/elec uner the Constitution
@FGA
HHan the
O/nibus Election Coe for that /atterHHrelates to the enforce/ent an
a/inistration of all la7s an re0ulations relatin0 to the conuct of elections to
public office to ensure a free, orerl. an honest electoral e5ercise! An ho7
i petitioners co/e to their conclusion about their abication theor.P B.
accein0 to Art! C!C of the auto/ation contract, Co/elec relin>uishe, so
petitioners clai/, supervision an control of the s.ste/ to be use for the
auto/ate elections! To a /ore specific point, the loss of control, as /a. be
euce fro/ the ensuin0 e5chan0es, arose fro/ the fact that Co/elec 7oul
not be holin0 possession of 7hat in "T 9ar0on are the public an private :e.s
pair!

C)"E8 ,UST"CE# Jell, /ore specificall. are .ou sa.in0 that the /ain
course of this lost of control is the fact that SMARTMAT"C hols the public an
private :e.s to the sanctit. of this s.ste/P
ATT'! RO$UE# 'es, 'our )onor, as 7ell as the fact that the. control the
pro0ra/ e/bee in the :e. cost that 7ill rea their votes b. 7hich the
electorate /a. verif. that their votes 7ere counte!
C)"E8 ,UST"CE# 'ou are sa.in0 that SMARTMAT"C an not its partner
T"M 7ho hol these public an private :e.sP
ATT'! RO$UE# 'es, 'our )onor!

The Court is not convince! There is to us nothin0 in Art C!C of the
auto/ation contract, even if rea separatel. fro/ other stipulations an the
provisions of the bi ocu/ents an the Constitution itself, to support the
si/plistic conclusion of abication of control presse on the Court! "nsofar as
pertinent, Art C!C reas#

C!C The PRO+"-ER shall be liable for all its obli0ations uner this Pro9ect
an the perfor/ance of portions thereof b. other persons or entities not parties to
this Contract shall not relieve the PRO+"-ER of sai obli0ations an
conco/itant liabilities!
SMARTMATIC, a! "6e D(&n" <en"4e pa"ne ;&"6 "6e 8ea"e "a5E
e5(d &n a4"(0a"ed e:e5"&(n!, !6a:: #e &n 56a8e (7 "6e "e56n&5a: a!pe5"! (7
"6e 5(4n"&n8 and 5an<a!!&n8 !(7";ae and 6ad;ae, incluin0 trans/ission
confi0uration an s.ste/ inte0ration! SMARTMAT"C shall also be pri/aril.
responsible for preventin0 an troubleshootin0 technical proble/s that /a. arise
urin0 the elections! ;E/phasis ae!<

The proviso esi0natin0 S/art/atic as the 9oint venture partner in char0e of
the technical aspect of the countin0 an canvassin0 7ares oes not to us translate,
7ithout /ore, to cein0 control of the electoral process to S/art/atic! "t bears to
stress that the aforesai esi0nation of S/art/atic 7as not pluc:e fro/ thin air,
as it 7as in fact an eli0ibilit. re>uire/ent i/pose, shoul the bier be a 9oint
venture! Part D, par! D!B ;e< of the Instruction to Bidders on the sub9ect E:&8&#:e
B&dde!, 7hence the secon para0raph of afore>uote Art! C!C ca/e fro/, reas#

D!B A ,+ of t7o or /ore fir/s as partners shall co/pl. 7ith the follo7in0
re>uire/ents!
5 5 5 5
;e< The ,+ /e/ber 7ith a 0reater trac: recor in auto/ate elections,
shall be in-char0e of the technical aspects of the countin0 an canvassin0 soft7are
an har7are, incluin0 trans/ission confi0uration an s.ste/ inte0ration

An lest it be overloo:e, the R8P, 7hich for/s an inte0ral part of the
auto/ation contract,
@FEA
has put all prospective biers on notice of Co/elec6s
intent to auto/ate an to accept bis that 7oul /eet several nees, a/on0 7hich
is Ka co/plete solutions provierQ 7hich can provieQ effective overall
nation7ie pro9ect /ana0e/ent serviceQ 4nde COMELEC !4pe<&!&(n and
5(n"(:, to ensure effective an successful i/ple/entation of the @auto/ationA
Pro9ect!L
@FFA
Co/ple/entin0 this R8P avisor. as to control of the election process
is Art! G!E of the auto/ation contract, proviin0#

G!E Sub9ect to the provisions of the %eneral "nstructions to be issue b.
the Co//ission En Banc, "6e en"&e p(5e!!e! (7 <("&n8, 5(4n"&n8,
"an!0&!!&(n, 5(n!(:&da"&(n and 5an<a!!&n8 (7 <("e! !6a:: #e 5(nd45"ed #$
COMELECB! pe!(nne: and (77&5&a:!, an their perfor/ance, co/pletion an
final results accorin0 to specifications an 7ithin the specifie perios shall be
the share responsibilit. of COME(EC an the PRO+"-ER! ;E/phasis
ae!<

But not one to let an opportunit. to score points pass b., petitioners
rhetoricall. as:# KJhere oes Public Responent Co/elec inten to 0et this lar0e
nu/ber of professionals, /an. of 7ho/ are alrea. 0ainfull. e/plo.e
abroaPL
@F4A
The Co/elec, citin0 Sec! C
@42A
an Sec! D of RA FBCG,
@41A
as a/ene,
aptl. ans7ere this poser in the follo7in0 7ise#
5 5 5 @PAublic responent COME(EC, in the i/ple/entation of the
auto/ate pro9ect, 7ill for0e partnerships 7ith various entities in ifferent fiels to
brin0 about the success of the 3212 auto/ate elections!
Public responent COME(EC 7ill partner 7ith S/art/atic T"M
Corporation for the trainin0 an hirin0 of the "T personnel as 7ell as for the
/assive voter-eucation ca/pai0n! There is in fact a bu0et allocation 5 5 5 for
these unerta:in0s! 5 5 5
As re0ars the re>uire/ent of RA 4CG4 that "T-capable personnel shall be
eputi=e as a /e/ber of the BE" an that another "T-capable person shall assist the
BOC, public responent COME(EC shall partner 7ith -OST an other a0encies
an instru/entalities of the 0overn/ent!

"n not so /an. 7ors urin0 the oral ar0u/ents an in their respective
Me/orana, public an private responents cate0oricall. re9ecte outri0ht
alle0ations of abication b. the Co/elec of its constitutional ut.! The petitioners,
to stress, are stran0ers to the auto/ation contract! Not one participate in the
biin0 conference or the biin0 proper or even perhaps e5a/ine the biin0
ocu/ents an, therefore, none reall. :no7s the real intention of the parties! As
case la7 tells us, the court has to ferret out the real intent of the parties! Jhat is
fairl. clear in this case, ho7ever, is that petitioners 7ho are not even priv. to the
biin0 process foist upon the Court their o7n vie7 on the stipulations of the
auto/ation contract an present to the Court 7hat the. thin: are the parties6 true
intention! "t is a stu. of outsiers appearin0 to :no7 /ore than the parties o,
but actuall. speculatin0 7hat the parties intene! The follo7in0 is self-
e5planator.#

C)"E8 ,UST"CE# Jh. i .ou sa. that it i not, i .ou tal: 7ith the Chair/an
an Co//issioners of COME(EC that the. faile to perfor/ this ut., the. i
not e5ercise this po7er of controlP
ATT'! RO$UE # 'our )onor, " base it on the fact that it 7as the COME(EC in
fact that entere into this contract Q!
C)"E8 ,UST"CE # 'es, but /. >uestion is H i .ou confront the COME(EC
officials that the. forfeite their po7er of control in over our election processP
ATT'! RO$UE # Je i not confront, .our )onor! Je i/pu0ne their acts, 'our
)onor!
@43A
,ust as the. o on the issue of control over the electoral process, petitioners
also anchor on speculative reasonin0 their clai/ that S/art/atic has possession
an control over the public an private :e.s pair that 7ill operate the PCOS
/achines! Consier# Petitioners6 counsel 7as at the start coc:sure about
S/art/atic6s control of these :e.s an, 7ith its control, of the electoral process!
@4CA

Several >uestions later, his ans7ers ha a >ualif.in0 tone#

,UST"CE NAC)URA# An can COME(EC uner the contract not e/an that it
have access, that it be 0iven access to an in fact 0enerate its o7n :e.s
inepenentl. 7ith SMARTMAT"C so that it 7oul be COME(EC an not
SMARTMAT"C that 7oul have full control of the technolo0. insofar as the :e.s
are concerne 555P

ATT'! RO$UE# " o not :no7 if COME(EC 7ill be in a position to 0enerate
these :e.s, 555!
@4BA


An subse>uentl., the speculative nature of petitioners6 position as to 7ho
7oul have possession an control of the :e.s beca/e apparent!

C)"E8 ,UST"CE# 'es, but i .ou chec: 7ith the COME(EC 7ho 7ill be
holin0 these t7o :e.s 5 5 5 i .ou chec: 7ith COME(EC 7hether this s.ste/
is correctP

ATT'!RO$UE# Je have not ha occasion to o so, 5 5 5 'our )onor!

5 5 5 5

C)"E8 ,UST"CE# Jh. o .ou /a:e that poor conclusion a0ainst the COME(EC
5 5 5 Ma. not the COME(EC hire the services of e5perts in orer for the
institution to be able to ischar0e its constitutional functionsP

ATT'! RO$UE# That is true, but 5 5 5 there is too /uch reliance on iniviuals
7ho o not have the sa/e :in of accountabilit. as public officers 5 5 5

C)"E8 ,UST"CE# Are .ou sa.in0 that the COME(EC i not consult 7ith
available "!T! e5perts in the countr. before it /ae the biin0 rules before it
conucte the biin0 an /a:e the other polic. 9u0/entsP

ATT'! RO$UE# 'our )onor, 7hat " a/ sure is that the. i not confer 7ith the
"!T! 8ounation 5 5 5!
C)"E8 ,UST"CE# But is that founation the onl. e5pert, oes it have a /onopol.
of :no7le0eP
@4DA


The Court, to be sure, reco0ni=es the i/portance of the vote-securit. issue
revolvin0 aroun the issuance of the public an private :e.s pair to the Boar of
Election "nspectors, incluin0 the i0ital si0natures! The NCC co//ent on the
/atter eserves /ention, appearin0 to he7 as it oes to 7hat appear on the
recors! The NCC 7rote#

The R8P?TOR use in the recent biin0 for the AES to be use in the
3212 elections specificall. /anate the use of public :e. cr.pto0raph.!
)o7ever, it 7as left to the iscretion of the bier to propose an acceptable
/anner of utili=ation for approval?acceptance of the Co/elec! No7here in the
R8P?TOR 7as it inicate that COME(EC 7oul ele0ate to the 7innin0 bier
the full iscretion, supervision an control over the /anner of PN" @Public Ne.
"nfrastructureA utili=ation!


Jith the vie7 7e ta:e of the auto/ation contract, the role of S/art/atic
T"M Corporation is basicall. to suppl. the 0oos necessar. for the auto/ation
pro9ect, such as but not li/ite to the PCOS /achines, PCs, electronic
trans/ission evices an relate e>uip/ent, both har7are an soft7are, an the
technical services pertainin0 to their operation! As lessees of the 0oos an the
bac:-up e>uip/ent, the corporation an its operators 7oul provie assistance
7ith respect to the /achines to be use b. the Co/elec 7hich, at the en of the
a., 7ill be conuctin0 the election thru its personnel an 7hoever it eputi=es!

An if onl. to e/phasi=e a point, Co/elec6s contract is 7ith S/art/atic
T"M Corporation of 7hich S/art/atic is a B2M /inorit. o7ner, per the ,+A of
T"M an S/art/atic an the Articles of "ncorporation of S/art/atic T"M
Corporation! Accorin0l., an. ecision on the part or on behalf of S/art/atic 7ill
not be binin0 on Co/elec! As a necessar. corollar., the boar roo/ votin0
arran0e/ent that S/art/atic an T"M /a. have a0ree upon as 9oint venture
partners, inclusive of the veto vote that one /a. have po7er over the other, shoul
reall. be the least concern of the Co/elec!

Parentheticall., the contention that the PCOS 7oul infrin0e on the secrec.
an sanctit. of the ballot because, as petitioners 7oul put it, the voter 7oul be
confronte 7ith a Kthree feetL lon0 ballot,
@4GA
oes not co//en itself for
concurrence! Surel., the Co/elec can put up such infrastructure as to insure that
the voter can 7rite his preference in relative privac.! An as e/onstrate urin0
the oral ar0u/ents, the voter hi/self 7ill personall. fee the ballot into the
/achine! A voter, if so /ine to preserve the secrec. of his ballot, 7ill al7a.s
evise a 7a. to o so! B. the sa/e to:en, one 7ith least re0ar for secrec. 7ill
li:e7ise have a 7a. to /a:e his vote :no7n!

-urin0 the oral ar0u/ents, the notion of a possible violation of the Anti-
-u//. (a7 croppe up, 0iven the R8P re>uire/ent of a 9oint venture bier to
be at least be G2M 8ilipino! On the other han, the 7innin0 bier, T"M-
S/art/atic 9oint venture, has S/art/atic, a forei0n corporation, o7nin0 B2M of
the e>uit. in, first, the 9oint venture partnership, an then in S/art/atic T"M
Corporation!

The Anti--u//. (a7
@4EA
pertinentl. states#

Section 1! Penalty. In a:: 5a!e! &n ;6&56 an$ 5(n!"&"4"&(na: ( :e8a:
p(<&!&(n eF4&e! P6&:&pp&ne ( an$ ("6e !pe5&7&5 5&"&=en!6&p a! a eF4&!&"e
7( "6e e9e5&!e ( enD($0en" (7 a &86", 7an56&!e ( p&<&:e8e, an. citi=en of
the Philippines or of an. other specific countr. 7ho allo7s his na/e or
citi=enship to be use for the purpose of evain0 such provision, an an. alien or
forei0ner profitin0 thereb., shall be punishe b. i/prison/ent 555 an b. a fine
555!

SECT"ON 3! &imulation of minimum capital stoc> H In a:: 5a!e! &n ;6&56
a 5(n!"&"4"&(na: ( :e8a: p(<&!&(n eF4&e! "6a" a corporation or association
/a. e5ercise or en9o. a ri0ht, franchise or privile0e, n(" less than a certain per
centu/ of its capital /ust be o7ne b. citi=ens of the Philippines or an. other
specific countr., &" !6a:: #e 4n:a;74: "( 7a:!e:$ !&04:a"e "6e e9&!"en5e (7 !456
0&n&040 !"(5E ( 5ap&"a: a! (;ned #$ !456 5&"&=en 7( "6e p4p(!e (7
e<ad&n8 !456 p(<&!&(n! 555

SECT"ON 3-A! +nla"ful use# ECploitation or En!oyment! An. person,
corporation, or association 7hich, havin0 in its na/e or uner its control, a &86",
7an56&!e, p&<&:e8e, p(pe"$ ( #4!&ne!!, "6e e9e5&!e ( enD($0en" (7 ;6&56
&! e9pe!!:$ e!e<ed #$ "6e C(n!"&"4"&(n ( "6e :a;! "( 5&"&=en! (7 "6e
P6&:&pp&ne! ( (7 an$ ("6e !pe5&7&5 5(4n"$, ( "( 5(p(a"&(n! ( a!!(5&a"&(n!
a" :ea!" !&9"$ pe 5en"40 (7 "6e 5ap&"a: (7 ;6&56 &! (;ned #$ !456 5&"&=en!,
per/its or allo7s the use, e5ploitation or en9o./ent thereof b. a person,
corporation, or association not possessin0 the re>uisites prescribe b. the
Constitution or the la7s of the PhilippinesI or leases, or in an. other 7a.,
transfers or conve.s sai ri0ht, franchise, privile0e, propert. or business to a
person, corporation or association not other7ise >ualifie uner the Constitution
555 shall be punishe b. i/prison/ent 555 ;E/phasis ae!<


The Anti--u//. (a7 has been enacte to li/it the en9o./ent of certain
econo/ic activities to 8ilipino citi=ens or corporations! 8or liabilit. for violation of
the la7 to attach, it /ust be establishe that there is a la7 li/itin0 or reservin0 the
en9o./ent or e5ercise of a ri0ht, franchise, privile0e, or business to citi=ens of
thePhilippines or to corporations or associations at least G2 per centu/ of the
capital of 7hich is o7ne b. such citi=ens! "n the case at bench, the Court is not
a7are of an. constitutional or statutor. provision classif.in0 as a nationali=e
activit. the lease or provision of 0oos an technical services for the auto/ation of
an election! "n fact, Sec! F of RA FBCG, as a/ene, vests the Co/elec 7ith
specific authorit. to ac>uire AES fro/ forei0n sources, thus#

SEC 13! Procurement of Equipment and *aterials!H To achieve the
purpose of this Act, the Co//ission is authori=e "( procure, 555, b. p456a!e,
:ea!e, rent or other for/s of ac>uisition, supplies, e>uip/ent, /aterials, !(7";ae,
7a5&:&"&e!, an other services, fro/ local or 7(e&8n !(45e! 555! ;E/phasis
ae!<

Petitioners cite E5ecutive Orer No! ;EO< DFB,
@4FA
Series of 322G,
purportel. li/itin0 Kcontracts for the suppl. of /aterials, 0oos an co//oities
to 0overn/ent-o7ne or controlle corporation, co/pan., a0enc. or /unicipal
corporationL to corporations that are G2M 8ilipino! Je o not >uite see the
0overnin0 relevance of EO DFB! 8or let alone the fact that RA 4CG4 is, in relation
to EO DFB, a subse>uent enact/ent an, therefore, en9o.s pri/ac. over the
e5ecutive issuance, the Co/elec oes fall uner the cate0or. of a 0overn/ent-
o7ne an controlle corporation, an a0enc. or a /unicipal corporation
conte/plate in the e5ecutive orer!

A vie7 has been avance re0arin0 the susceptibilit. of the AES to
hac:in0, 9ust li:e the votin0 /achines use in certain precincts in 8loria, USA in
the %ore-Bush presiential contests! )o7ever, an anal.sis of post-election reports
on the votin0 s.ste/ thus use in the US urin0 the perio /aterial an the AES to
be utili=e in the 3212 auto/ation pro9ect see/s to su00est star: ifferences
bet7een the t7o s.ste/s! The first relates to the Source Coe, efine in RA 4CG4
as Khu/an reaable instructions that efine 7hat the co/puter e>uip/ent 7ill
o!L
@44A
The Source Coe for the 3212 AES shall be available an opene for
revie7 b. political parties, caniates an the citi=ens6 ar/s or their
representativesI
@122A
7hereas in the US precincts afore/entione, the Source Coe
7as alle0e to have been :ept secret b. the /achine /anufacture co/pan., thus
:eepin0 the A/erican public in the ar: as to ho7 e5actl. the /achines counte
their votes! An seconl., in the AES, the PCOS /achines foun in the precincts
7ill also be the sa/e evice that 7oul tabulate an canvass the votesI 7hereas in
the US, the /achines in the precincts i not count the votes! "nstea the votes cast
appeare to have been store in a /e/or. car that 7as brou0ht to a countin0
center at the en of the a.! As a result, the hac:in0 an cheatin0 /a. have
possibl. occurre at the countin0 center!

Aitionall., 7ith the AES, the possibilit. of s.ste/ hac:in0 is ver. sli/!
The PCOS /achines are onl. online 7hen the. trans/it the results, 7hich 7oul
onl. ta:e aroun one to t7o /inutes! "n orer to hac: the s.ste/ urin0 this tin.
span of vulnerabilit., a super co/puter 7oul be re>uire! Note7orth. also is the
fact that the /e/or. car to be use urin0 the elections is encr.pte an rea-
onl.HH/eanin0 no illicit pro0ra/ can be e5ecute or introuce into the /e/or.
car!

Therefore, even thou0h the AES has its fla7s, Co/elec an S/art/atic have
seen to it that the s.ste/ is 7ell-protecte 7ith sufficient securit. /easures in
orer to ensure honest elections!

An as inicate earlier, the 9oint venture provier has for/ulate an put in
place a continuit. an bac:-up plans that 7oul aress the unerstanable
apprehension of a failure of elections in case the /achines falter urin0 the actual
election! This over-all fall-bac: strate0. inclues the provisions for 3,222 spare
PCOS /achines on top of the F2,222 units assi0ne to an e>ual nu/ber precincts
throu0hout the countr.! The continuit. an bac:-up plans see: to aress the
follo7in0 eventualities# 1)/ The PCOS fails to scan ballotsI 12/ The PCOS scans
the ballots, but fails to print election returns ;ERs<I an?or 13/ The PCOS prints but
fails to trans/it the ERs! "n the event ite/ R1 occurs, a spare PCOS, if available,
7ill be brou0ht in or, if not available, the PCOS of another precinct ;PCOS 3 for
clarit.<, after observin0 certain efine re>uire/ents,
@121A
shall be use! Shoul all
the PCOS /achines in the entire /unicipalit.?cit. fail, 0an4a: 5(4n"&n8 of the
paper ballots an the 0an4a: a55(0p:&!60en" of ERs shall be resorte to in
accorance 7ith Co/elec pro/ul0ate rules on appreciation of auto/ate ballots!
@123A
"n the event ite/ R3 occurs 7here the PCOS /achines fail to print ERs, the use
of spare PCOS an the transfer of PCOS-3 shall be effecte! Man4a: 5(4n"&n8 of
ERs shall be resorte to also if all PCOS fails in the entire /unicipalit.! An
shoul eventualit. RC transpire, the follo7in0 bac:-up options, a/on0 others, /a.
be availe of# brin0in0 PCOS-1 to the nearest precinct or pollin0 center 7hich has
a functionin0 trans/ission facilit.I insertin0 trans/ission cable of functionin0
trans/ission line to PCOS-1 an trans/ittin0 store ata fro/ PCOS-1 usin0
functionin0 trans/ission facilit.!

The isruption of the election process ue to /achine brea:o7n or
/alfunction /a. be li/ite to a precinct onl. or coul affect an entire
/unicipal?cit.! The 7orst case scenario of course 7oul be the 7holesale
brea:o7n of the F3,222 PCOS /achines! Nonetheless, even in this /ost e5tre/e
case, failure of all the /achines 7oul not necessaril. translate into failure of
elections! Manual count tabulation an trans/ission, as earlier state, can be one,
PCOS bein0 a paper-ballot technolo0.! "f the /achine fails for 7hatever reason,
the paper ballots 7oul still be there for the han countin0 of the votes, /anual
tabulation an trans/ission of the ERs! 8ailure of elections conse>uent to votin0
/achines failure 7oul, in fine, be a ver. re/ote possibilit.!

A final consieration!

The first step is al7a.s ifficult! )arl. an.thin0 7or:s, let alone ens up
perfectl. the first ti/e aroun! As has often been sai, if one loo:s har enou0h, he
7ill in all li:elihoo fin a 0litch in an. ne7 s.ste/! "t is no 7oner so/e "T
specialists an practitioners have consiere the PCOS as unsafe, not the /ost
appropriate technolo0. for Philippine elections, an Keasil. hac:able,L even! An
the 7orst fear e5presse is that isaster is 9ust 7aitin0 to happen, that PCOS 7oul
not 7or: on election a.!

Con0ress has chosen the Ma. 3212 elections to be the /aien run for full
auto/ation! An 9u0in0 fro/ 7hat the Court has hear an rea in the course of
these proceein0s, the choice of PCOS b. Co/elec 7as not a spur-of-/o/ent
affair, but the prouct of honest-to-0ooness stuies, consultations 7ith CAC, an
lessons learne fro/ the ARMM 322F auto/ate elections! Jith the bac:in0 of
Con0ress b. 7a. of bu0etar. support, the poll bo. has ta:en this historic, if not
a/bitious, first step! "t starte 7ith the preparation of the R8P?TOR, 7ith a list of
volu/inous anne5es e/bo.in0 in specific etail the biin0 rules an
e5pectations fro/ the biers! An after a hotl. conteste an, b. /ost accounts, a
hi0hl. transparent public biin0 e5ercise, the 9oint venture of a 8ilipino an
forei0n corporation 7on an, after its /achine hurle the en-to-en
e/onstration test, 7as eventuall. a7are the contract to unerta:e the
auto/ation pro9ect! Not one of the losin0 or is>ualifie biers >uestione, at
least not before the courts, the bona fides of the biin0 proceures an the
outco/e of the biin0 itself!

Assa.e a0ainst the provisions of the Constitution, the enablin0 auto/ation
la7, RA FBCG, as a/ene b. RA 4CG4, the R8P an even the Anti--u//. (a7,
7hich petitioners invo:e as an afterthou0ht, the Court fins the pro9ect a7ar to
have co/plie 7ith le0al prescriptions, an the ter/s an conitions of the
corresponin0 auto/ation contract in >uestion to be vali! No 0rave abuse of
iscretion, therefore, can be lai on the oorsteps of responent Co/elec! An
surel., the 7innin0 9oint venture shoul not be faulte for havin0 a forei0n
co/pan. as partner!

The Co/elec is an inepenent constitutional bo. 7ith a istinct an
pivotal role in our sche/e of 0overn/ent! "n the ischar0e of its a7eso/e
functions as overseer of fair elections, a/inistrator an lea i/ple/entor of la7s
relative to the conuct of elections, it shoul not be st./ie 7ith restrictions that
7oul perhaps be 9ustifie in the case of an or0ani=ation of lesser responsibilit.!
@12CA
"t shoul be affore a/ple elbo7 roo/ an enou0h 7here7ithal in evisin0
/eans an initiatives that 7oul enable it to acco/plish the 0reat ob9ective for
7hich it 7as createHHto pro/ote free, orerl., honest an peaceful elections! This
is as it shoul be for, too often, Co/elec has to /a:e ecisions uner ifficult
conitions to aress unforeseen events to preserve the inte0rit. of the election an
in the process the voice of the people! Thus, in the past, the Court has steere
a7a. fro/ interferin0 7ith the Co/elec6s e5ercise of its po7er 7hich, b. la7 an
b. the nature of its office properl. pertain to it! Absent, therefore, a clear sho7in0
of 0rave abuse of iscretion on Co/elec6s part, as here, the Court shoul refrain
fro/ utili=in0 the corrective han of certiorari to revie7, let alone nullif., the acts
of that bo.! This 0e/, 7hile not on all fours 7ith, is lifte fro/, the Court6s
holin0 in an ol but oft-cite case#

5 5 5 Je /a. not a0ree full. 7ith @the Co/elec6sA choice of /eans, but
unless these are clearl. ille0al or constitute 0ross abuse of iscretion, this court
shoul not interfere! Politics is a practical /atter, an political >uestions /ust be
ealt 7ith realisticall.HHnot fro/ the stanpoint of pure theor. @or speculationA! 5
5 5

5 5 5 5

There are no rea.-/ae for/ulas for solvin0 public proble/s! Ti/e an
e5perience are necessar. to evolve patterns that 7ill serve the ens of 0oo
0overn/ent! "n the /atter of the a/inistration of the la7s relative to the conuct
of elections, 5 5 5 7e /ust not b. an. e5cessive =eal ta:e a7a. fro/ the
@Co/elecA the initiative 7hich b. constitutional an le0al /anates properl.
belon0s to it! -ue re0ar to the inepenent character of the Co//ission 5 5 5
re>uires that the po7er of this court to revie7 the acts of that bo. shoul, as a
0eneral proposition, be use sparin0l., but fir/l. in appropriate cases!
@12BA
5 5 5

The Court, ho7ever, 7ill not inul0e in the presu/ption that nothin0 7oul
0o 7ron0, that a successful auto/ation election un/arre b. frau, violence, an
li:e irre0ularities 7oul be the orer of the /o/ent on Ma. 12, 3212! Neither 7ill
it 0uarantee, as it cannot 0uarantee, the effectiveness of the votin0 /achines an
the inte0rit. of the countin0 an consoliation soft7are e/bee in the/! That
tas: belon0s at the first instance to Co/elec, as part of its /anate to ensure clean
an peaceful elections! This inepenent constitutional co//ission, it is true,
possesses e5traorinar. po7ers an en9o.s a consierable latitue in the ischar0e
of its functions! The roa, ho7ever, to7ars successful 3212 auto/ation elections
7oul certainl. be rou0h an bu/p.! The Co/elec is laborin0 uner ver. ti0ht
ti/elines! "t 7oul accorin0l. nee the help of all avocates of orerl. an honest
elections, of all /en an 7o/en of 0oo7ill, to s/oothen the 7a. an assist
Co/elec personnel aress the fears e5presse about the inte0rit. of the s.ste/!
(i:e an.one else, the Court 7oul li:e an 7ish auto/ate elections to succee,
creibl.!

%HEREFORE, the instant petition is hereb. DENIED!

SO ORDERED.



PRESBITERO J. VELASCO, JR.
Associate ,ustice




















JE CONCUR#

REYNATO S. PUNO
Chief ,ustice



;On official leave<
LEONARDO A. QUISUMBING CONSUELO YNARES'SANTIAGO
Associate ,ustice Associate ,ustice




ANTONIO T. CARPIO RENATO C. CORONA
Associate ,ustice Associate ,ustice




CONCHITA CARPIO MORALES MINITA V. CHICO'NAZARIO
Associate ,ustice Associate ,ustice




ANTONIO EDUARDO B. NACHURA TERESITA J. LEONARDO'DE
CASTRO
Associate ,ustice Associate ,ustice




ARTURO D. BRION DIOSDADO M. PERALTA
Associate ,ustice Associate ,ustice




LUCAS P. BERSAMIN MARIANO C. DEL CASTILLO
Associate ,ustice Associate ,ustice



ROBERTO A. ABAD
Associate ,ustice





C E R T I F I C A T I O N

Pursuant to Section 1C, Article +""" of the Constitution, it is hereb. certifie
that the conclusions in the above -ecision 7ere reache in consultation before the
case 7as assi0ne to the 7riter of the opinion of the Court!



REYNATO S. PUNO
Chief ,ustice








&
On official leave!

@1A
Both corporations are also referre to in the petition an other pleain0s as Total "nfor/ation
Mana0e/ent, "nc! an S/art/atic "nternational, "nc!

@3A
Rollo, pp! FE-A an FE-B!

@CA
"! at DEG-A! -ate ,ul. 3F, 3224!

@BA
An Act A/enin0 @RAA FBCG, entitle KAn Act Authori=in0 the @Co/elecA to Use Auto/ate Election
S.ste/ in the Ma. 11, 144F National or (ocal Elections an in Subse>uent National or (ocal Electoral E5ercises, to
Encoura0e Transparenc., Creibilit., 8airness an Accurac. of Elections, A/enin0 for the Purpose Batas
Pa/bansa Bl0! FF1, as A/ene, @RAA E1GG an Other Relate Election (a7s, Proviin0 8uns Therefor an 8or
Other Purposes!L

@DA
Co/pose of, a/on0 others, the Chairperson of the Co//ission on "nfor/ation an Co//unications
Technolo0. ;C"CT<, one /e/ber each fro/ the -ept! of Eucation an the -ept! of Science an Technolo0. an
three /e/bers representin0 "CT professional or0ani=ations!

@GA
Sec! 4!

@EA
"t shall be co/pose of a representative each fro/ the Co//ission, C"TC an -OST!

@FA
Sec! 11!

@4A
Co/pose of the cities an /unicipalities in the provinces of "sabela ;e5cept "sabela Cit.<, Sulu, Ta7i-
Ta7i, Ma0uinanao ;e5cept Cotabato Cit.< an (anao el Sur!

@12A
-RE is a technolo0. 7herein a vote is cast irectl. on a /achine b. the use of a touch screen,
touchpa, :e.pa or other evice an the /achine recors the iniviual votes an calculates the total votes
electronicall.!

@11A
CCOS /eans a technolo0. 7herein an optical ballot scanner, into 7hich optical scan paper ballots
/ar:e b. han b. the voter are inserte to be counte, is locate in ever. votin0 center!

@13A
Rollo, p! FEB! Public Responents6 Me/oranu/!

@1CA
Senate Resolutions 4G an DGE, s! of 322F, authore b. Senators %oron an +illar,
respectivel.I see Anne5es F an 4 of private responents6 Me/oranu/!

@1BA
Me/oranu/ of the NCC, p! 3C!

@1DA
Sec! 3 of RA 4CG4 efines Kpaper-base election s.ste/L as a t.pe of auto/ate election s.ste/ that
uses paper ballotsI recors an counts votesI an tabulates, consoliates?canvasses an trans/its electronicall. the
results of the vote counts!

@1GA
The %lossar. of Ter/s of the R8P efines PCOS as referrin0 to a technolo0. 7herein an optical ballot
scanner, into 7hich optical scan paper ballots /ar:e b. han b. the voter are inserte to be counte, is locate in
ever. precinct!

@1EA
Sec! 3 ;12< of RA FBCG, as a/ene, efines Kcontinuit. planL as a Klist of contin0enc. /easures an
the policies for activation of such, that are put in place to ensure continuous operation of the AES!L

@1FA
The for/ulation of a continuit. plan is a re>uire/ent uner Sec! 4 of RA FBCG, the activation of 7hich
shall be unerta:en in the presence of political parties6 representatives an the citi=ens ar/ of the Co/elec!

@14A
Ter/s, Conitions an "nstruction to Biers, pp! BD-D2 of the R8P!

@32A
Contains 7hat the R8P refers to as Class KAL ocu/ents, referrin0 to le0al, technical an financial
ocu/entsI an Class KBL ocu/ents, a/on0 7hich is a vali ,+A, in case of 9oint venture!

@31A
"te/ "O, par! C!C of the R8P!

@33A
Rollo, p! C44! Per Certification of the -irector of the Co/elec6s Eucation S "nfor/ation -epart/ent,
Anne5 KBL of public responents6 Co//ent!

@3CA
Publishe on March 1B-1G, 3224!

@3BA
Rollo, p! 34D! Public responents6 Co//ent on the Petition, p! E!

@3DA
Par! 3!3!B! of Part "O ;B< of the R8P!

@3GA
S/art/atic is a subsiiar. of S/art/atic "nternational )olin0, B!+! of Netherlans!

@3EA
T"M-S/art/atic, "nra Consortiu/ an %ilat Consortiu/!

@3FA
Rollo, pp! B1E-BC1! O/nibus SBAC Res! 24-221, Anne5 KG,L public responents6 Co//ent!

@34A
"! at FBB-FBF! Anne5 K12L of private responents6 Me/oranu/!

@C2A
Testin0 of the entire s.ste/ in an actual si/ulate election!

@C1A
Anne5 KC,L T"M-S/art/atic Co//ent!

@C3A
Rollo, p! BGF! Anne5 K12,L public responents6 Co//ent!

@CCA
"! at 3GC-3F1! Anne5 K3,L S/art/atic T"M Corp!6s Co//ent!

@CBA
-eno/inate as the Contract for t%e Provision of an utomated Election &ystem for t%e *ay 49# 8949
&ync%roni<ed )ational and -ocal Elections!

@CDA
Par! B!1!

@CGA
Rollo, p! DBF! Anne5 K1B,L public responents6 Co//ent!
@CEA
"! at FFE! Me/oranu/ of public responents, p! 3C!

@CFA
1on<ales v. )arvasa, %!R! No! 1B2FCD, Au0ust 1B, 3222, CCE SCRA ECC, EB2!

@C4A
Tatad v. &ecretary of t%e 2epartment of Energy, %!R! Nos! 13BCG2 S 13EFGE, Nove/ber D, 144E, 3F1
SCRA CC2, CB4I 2e 1uia v. C/*E-EC, %!R! No! 12BE13, Ma. G, 1443, 32F SCRA B32, B33!
@B2A
%!R! No! 1C2E1G, -ece/ber 4, 144F, 344 SCRA EBB, cite in C%ave< v. )0, infra!

@B1A
TSN of the oral ar0u/ents, p! 323!

@B3A
"! at 324!
@BCA
Sec! 3! The Con0ress shall provie a s.ste/ for securin0 the secrec. an sanctit. of the ballot 5 5 5!
@BBA
TSN of the oral ar0u/ents, p! EG!

@BDA
C%uidian v. &andiganbayan, %!R! Nos! 1DGCFC S 1G2E3C, ,ul. C1, 322G, B4E SCRA C3EI citin0 1inete
v. C, %!R! No! 13ED4G, Septe/ber 3B, 144F, 34G SCRA CF!

@BGA
RedeEa v. Court of ppeals, %!R! No! 1BGG11, 8ebruar. G, 322E, D1B SCRA CF4!
@BEA
*arabur v. Comelec, %!R! No! 1G4D1C, 8ebruar. 3G, 322E, D1G SCRA G4G!
@BFA
C%ave< v. )ational 0ousing ut%ority, %!R! No! 1GBD3E, Au0ust 1D, 322E, DC2 SCRA 3CD!

@B4A
Cabarles v. *aceda, %!R! No! 1G1CC2, 8ebruar. 32, 322E, D1G SCRA C2C!
@D2A
TSN, p! CF!

@D1A
TSN of Oral Ar0u/ents,+ol! ", p! GB!

@D3A
Rollo, pp! BCG-BGE! Anne5 KF,L public responents6 Co//ent!

@DCA
The Dth an Gth prea/bulator. clauses of the ,+A respectivel. provie#
J)EREAS, Ti/ an S/art/atic have a0ree to 9ointl. an severall. sub/it, as an incorporate 9oint
venture, a bi to the COME(EC for the auto/ation Pro9ect pursuant to the rules an ter/s set forth in the Re>uest
for ProposalI
J)EREAS, in the event that the bi sub/itte b. T"M an SMARTMAT"C is eclare to be the 7innin0
bi, T"M an SMARTMAT"C have a0ree to cause the incorporation of a 9oint venture corporation ;the K,+CL<
7hich 7ill enter into a contract 7ith the COME(EC for the Auto/ation Pro9ect!
@DBA
3!1 "n the event that COME(EC eclares the bi tenere b. T"M an SMARTMAT"C to be the
7innin0 bi for the Auto/ation Pro9ect, the parties hereto shall incorporate or cause to be incorporate, the ,+C
7hich shall be na/e KT"M SMARTMAT"C CORPRAT"ONL or an. other acceptable na/e Q 7hich /a. be
allo7e b. the SEC!
3!3! The ,+C shall be the corporate vehicle throu0h 7hich the 9oint venture Q shall be carrie out 5555!
The ,+C shall be the entit. 7hich shall enter into a contract 7ith the COME(EC for the Auto/ation Pro9ect of the
3212 National Elections!
3!C The purpose of the ,+C shall be to carr. out an perfor/ 9ointl., severall. an soliaril. the obli0ations
of T"M an SMARTMAT"C arisin0 fro/ bein0 eclare the 7innin0 bier in the public biin0 for the
Auto/ation Pro9ect 7hich obli0ations are spelle out in the @R8PA 555
3!B The authori=e capital stoc: of the ,+C is initiall. fi5e herein at 555 P)P1,C22,222,222!22 ivie
into Pesos# One Billion an Three )unre Million shares 555I Provie that the authori=e capital stoc: of the
,+C /a. be increase 7hen so 7arrante 555! 3!D The capital contributions of the parties hereto to the ,+C shall
be as follo7s# a! T"M b. itself or thorou0h its Philippine subsiiar. H si5t. percent ;G2M< of the shares to be issue
b. the ,+CI b! SMATMAT"C, b. itself or throu0h its Philippine subsiiar. H fort. percent ;B2M< of the shares to be
issue b. the ,+C! 555

@DDA
B!1 8or as lon0 as T"M, either b. itself or throu0h its subsiiar., o7ns an hols G2M of the
outstanin0 capital stoc: of the ,+C an entitle to vote, T"M shall be entitle to no/inate an elect G2M of the
Boar of -irectors of the ,+C! 8or as lon0 as SMARTMAT"C, either b. itself or throu0h its Philippine subsiiar.,
o7ns an hols B2M of the outstanin0 capital stoc: of the ,+C an entitle to vote, SMARTMAT"C shall be
entitle to no/inate an elect B2M of the Boar of -irectors of the ,+C

@DGA
E!1 The ,+C 7ill istribute its profits to the Shareholers to the e5tent eter/ine b. the Boar of
-irectors 555 after ta:in0 into account the financial re>uire/ents of the ,+C 7ith respect to the 7or:in0 capital!
555

@DEA
C!1 8or purposes of the Auto/ation Pro9ect, T"M /a. contribute to the ,+C an shall be responsible
for the follo7in0# a! the value-ae services pertainin0 or relate to canvassin0 units, s.ste/s inte0ration,
trans/ission an such other services as re>uire b. the Auto/ation Pro9ect an as inicate in the @R8PAI b! services
pertainin0 or relate to lo0istics, eplo./ent an /anpo7erI c! har7are, soft7are, ballot paper, consu/ables an
such other services as /a. be re>ueste b. SMARTMAT"CI an ! local support staff as /a. be re>uire uner the
circu/stancesI
C!3 8or purposes of the Auto/ation Pro9ect, SMARTMAT"C shall contribute to the ,+C an shall be
responsible for the follo7in0# a! the evelop/ent, /anufacture an?or suppl. of E+Ms, other /achines an
e>uip/ent, soft7are, technolo0. an s.ste/sI b! overall pro9ect /ana0e/ent as re>uire b. the Auto/ation Pro9ect
an as inicate in the @R8PA an c! an. other activit. not e5pressl. 7ritten in this A0ree/ent or assi0ne to T"MI
5 5 5 5
C!B "n the event the @financial an capital contributionA sources /entione in the precein0 Article C,C ;b<
or ;c< are insufficient to /eet the financial re>uire/ents of the ,+C, the parties shall bear the responsibilit. of
supportin0 or securin0 such financial re>uire/ents in proportion to their respective shareholin0s 555!

@DFA
%!R! No! 1D41C4, ,anuar. 1C, 322B, B14 SCRA 1BG!

@D4A
"! at 1GE!

@G2A
TSN of the oral ar0u/ents, p! 114!

@G1A
Sec! E!1 of the "TB reas# KThe bier shall specif. in its Bi all portions of the %oos an Services
that 7ill be subcontracte, if an., incluin0 the entities to 7ho/ each portion 7ill be subcontracte to 555!
Subcontractin0 of an. portion shall not relieve the Bier fro/ an. liabilit. or obli0ation that /a. arise fro/ its
perfor/ance!L

@G3A
Rollo, p! C12! Public responents6 Co//ent, p! 33!

@GCA
Approve on ,anuar. 3C, 322E, RA 4CG4 provies in its Sec! BE that it shall ta:e effect 1D a.s after its
publication in a ne7spaper of 0eneral circulation!

@GBA
The Senate6s Co//ent-in-"ntervention, p! B!
@GDA
Anne5 KAL @%lossar. of Ter/sA of the R8P!

@GGA
Rollo, 1EB-1ED! Private responents6 Co//ent on Petition, pp! 3E-3F!

@GEA
Me/oranu/, Report?Reco//enation on the 3212 Auto/ation Election Pro9ect Procure/ent, Anne5
K4,L Co//ent on Petition of Public Responents!

@GFA
Entitle KAn Act Appropriatin0 the Su/ of Eleven Billion Three )unre One Million Seven )unre
Ninet. Thousan Pesos ;P11,C21,E42,222!22< as Supple/ental Bu0et for an @AESA an for Other Purposes!L

@G4A
Rollo, p! 1CB1!

@E2A
On pa0e C of its Co//ent, NCC, thru its -ir! %en! An0elo Ti/oteo M! -ia= e Rivera, states# KJe
believe that the successful eplo./ent of the paper-base election s.ste/ in D of the G provinces of ARMM an the
concurrent eplo./ent of the irect-recorin0-electronic election s.ste/ in Ma0uinanao province, is substantial
co/pliance of the spirit of this la7, 0iven the unerl.in0 circu/stances!L

@E1A
Mr! A/ao A! Malaca/an, si0nin0 as secretar. of the "T8P, states# KThe ARMM election in Au0ust
322F 7as not a vali pilot run for t7o reasons# ;1< "t i not cover t7o hi0hl. urbani=e cities an t7o provinces
each in (u=on, +isa.as, an Minanao, an ;3< PCOS 7as not use in that electoral e5ercise!L

@E3A
Att.! Ro>ue sai# KThe PCOS sta0e is si/ilar to OMR because the. also have to shae the oval for the
caniate that the. 7ant to vote! The ifference is that in the OMR the. collate all the ballots 555 7here in PCOS
.ou on6t put it in a ballot, .ou fee it into the /achines!L

@ECA
Public responents6 Co//ent, pp! 3E-3F!

@EBA
Section D, RA FBCG, as a/ene!

@EDA
Petition, p! C2!

@EGA
"! at C1!

@EEA
Anne5 K4,L public responents6 Co//ent!

@EFA
See Note No! CC!

@E4A
Anne5 KF,L Co//ent of public responents!

@F2A
TSN, pp! C1D-C1G

@F1A
The final test shall be conucte at least three a.s before election after 7hich the PCOS an CCS shall
be seale for election a. use ;Part +, ite/ no! 1C, R8P<!

@F3A
TSN, p! F4!

@FCA
http#?? 777! co/?solutions auto/ate-elections-s.ste/-vie7?article?votin0 /achine!

@FBA
TSN, Oral Ar0u/ents, pp! BDD-BDG, B42!

@FDA
Rollo, pp! 12G3-12GC! Petitioners6 Me/oranu/, pp! 13-1C!

@FGA
Sec! 3, Art! "O-CI SECT"ON 3! The @Co/elecA shall e5ercise the follo7in0 po7ers an functions# ;1<
Enforce an a/inister all la7s an re0ulations relative to the conuct of an election, plebiscite, initiative,
referenu/ an recallI 555 ;B< -eputi=e 555 la7 enforce/ent a0encies 555 for the e5clusive purpose of ensurin0
free, orerl., honest peaceful an creible elections!

@FEA
31!1! KContract ocu/entsL refers to the follo7in0 ocu/ents an the. are hereb. incorporate an
/ae an inte0ral part of this Contract# 5 5 5 Anne5 KOL Re>uest for Proposal?Ter/s of Reference!

@FFA
Part "", R8P!

@F4A
Rollo, p! 124B! Petitioners6 Me/oranu/, p! BB!

@42A
SECT"ON C! Section C of @RAA FBCG is hereb. a/ene to rea as follo7s# KSEC! C Boar of Election
of Inspectors! H Jhere AES shall be aopte, at least one /e/ber of the Boar of Election "nspectors shall be an
@"TA-capable person, 7ho is traine or certifie b. the -OST to use such AES! Such certification shall be issue b.
the -OST, free of char0e!L
@41A
SECT"ON D! Section D of @RAA FBCG is hereb. a/ene to rea as follo7s# KSEC! B Information
Tec%nology &upport for t%e Board of Canvassers!- To i/ple/ent the AES, each boar of canvasser shall be assiste
b. an @"TA-capable person authori=e to operate the e>uip/ent aopte for the elections! The Co//ission shall
eputi=e @"TA personnel fro/ a/on0 a0encies an instru/entalities of the 0overn/ent, incluin0 0overn/ent-o7ne
an controlle corporations! 5 5 5L

@43A
TSN, Oral Ar0u/ents, pp! 32C-32G!

@4CA
"! at D2-D1!

@4BA
"! at 1DF-D4!

@4DA
"! at 14D-322!

@4GA
"! at 1E!

@4EA
CA 12F, as a/ene b. P- E1D!

@4FA
Pro/ul0atin0 the E
th
Re0ular 8orei0n "nvest/ent Ne0ative (ist!

@44A
Sec! 3! of RA 4CG4!

@122A
Sec! 12 of RA FBCG, as a/ene, states that Konce an AES technolo0. is selecte for i/ple/entation,
the Co//ission shall pro/ptl. /a:e the source coe available an open to an. intereste part. or 0roups 7hich
/a. conuct their o7n revie7 thereof!L

@121A
These inclue brin0in0 PCOS-3 to the precinct assi0ne to PCOS-1I brea:in0 seal of PCOS-1 to
0et precinct confi0urationI an brea:in0 seal of PCOS-3 to re/ove precinct confi0uration car!

@123A
Rollo, p! FBD!
!

@12CA
-eyaley v. Comelec, %!R! No! 1G22G1, October 11, 322G, D2B SCRA 31E!

@12BA
&umulong v. Comelec, EC Phil! 3FF, 34B-34G ;14B1<!