Three executives from the election technology company Smartmatic have found themselves in hot water. On August 8, a federal grand jury in the Southern District of Florida indicted Roger Alejandro Piñate Martinez, Elie Moreno, and Jose Miguel Vaque for their roles in an elaborate bribery and money laundering scheme. This development is sending shockwaves through the election technology industry and raising questions about the integrity of election services worldwide.
According to the Department of Justice (DOJ), the trio orchestrated a scheme between 2015 and 2018 that involved paying at least $1 million in bribes to Juan Andres Donato Bautista, the former Chairman of the Commission on Elections (COMELEC) in the Philippines. The goal? To secure contracts for providing voting machines and election services for the 2016 Philippine elections. These bribes were allegedly paid to ensure not only the awarding of these contracts but also the subsequent release of value-added tax payments tied to them.
The indictment reveals that the bribes were funneled through a slush fund created by over-invoicing the cost per voting machine. The co-conspirators used coded language and created fraudulent contracts and sham loan agreements to disguise these corrupt payments. The laundered funds made their way through bank accounts in Asia, Europe, and the United States, with a significant portion passing through the Southern District of Florida.
If convicted, Piñate and Vasquez face a maximum penalty of five years for violating the Foreign Corrupt Practices Act (FCPA) and conspiracy to violate the FCPA. Bautista, Piñate, Vasquez, and Moreno are each looking at up to 20 years for conspiracy to commit money laundering and international laundering of monetary instruments. The DOJ has emphasized that these individuals are presumed innocent until proven guilty, but the potential penalties are severe.
The indictment also has broader implications for Smartmatic, a company already under scrutiny due to its involvement in the 2020 U.S. elections and subsequent defamation lawsuits. Smartmatic has vehemently denied any wrongdoing, stating, “The company has never won a project through any illegal means.” However, the allegations could add fuel to the fire for those questioning the integrity and reliability of electronic voting systems.
The ripple effects of this indictment are expected to be far-reaching. For one, it could bolster the defense for media outlets and individuals currently facing defamation suits from Smartmatic. They could argue that the company’s tarnished reputation is a result of its own executives’ actions rather than defamatory statements made about its role in the 2020 elections.
Moreover, this scandal could lead to increased scrutiny and regulatory oversight for the entire election technology industry. Governments and election commissions worldwide might reconsider their reliance on electronic voting systems, fearing similar corruption and fraud issues.
The indictment of these Smartmatic executives puts a spotlight on the dark underbelly of election technology.
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