Arbitration in Singapore if Smartmatic-TIM partnership fails

abs-cbnNEWS.com | 07/06/2009 3:13 PM

The joint venture between the Netherlands-based Smartmatic and its Filipino partner, Total Information Management, will be governed by the rules of a Singaporean arbitration court if the partnership fails, according to the joint venture agreement of the two firms.

Smartmatic Chief Financial Officer Armando Yanes said the joint venture agreement rules that the two firms must submit to an arbitration court in Singapore "to avoid the parties from going to the courts immediately."

"It protects the joint partnership by resolving the matter," he said during a Senate hearing.

Yanes said the arbitration court in Singapore will work under Singapore's commercial arbitration rules. He added that the rules are procedural and will not contradict Philippine rules on arbitration.

The Senate blue-ribbon committee summoned Commission on Elections (Comelec) officials and “reconciled” executives of feuding poll-automation bidders Smartmatic and TIM to the hearing to ensure there would be no glitches in the country’s first nationally automated elections in 2010. TIM officials earlier threatened to withdraw from the P11.2 billion project over irreconcilable differences with Smartmatic over control of the joint venture.

During the hearing, Comelec Commissioner Nicodemo Ferrer said the government contract with Smartmatic-TIM allows for arbitration in the Philippines if the two companies fail to automate the polls in 2010.

Comelec Commissioner Rene Sarmiento said that under the poll automation project, certificates of canvass and certificates of proclamation will be transmitted electronically to the Offices of the Senate President and House Speaker as results come in. He added that hard copies of the duly authenticated COCs will be submitted to the two offices, as provided for in the Constitution.

Comelec Chairman Jose Melo said the contract may be signed on Friday, July 10.

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