The recent federal indictment of three current and former executives of Smartmatic has brought to light a scheme involving the payment of over $1 million in bribes to secure business in the Philippines. This development comes at a time when Smartmatic has been embroiled in controversy, particularly with allies of former President Donald Trump, who have made unsubstantiated claims about the company’s involvement in the 2020 U.S. presidential election.
According to the Justice Department, Smartmatic’s co-founder Roger Piñate and a colleague allegedly funneled bribes to the chairman of the Philippines’ electoral commission through a slush fund created by overcharging for voting machines supplied to authorities. These illicit payments, made between 2015 and 2018, were intended to secure business with the Philippines and ensure timely payment for Smartmatic’s services.
To conceal the corrupt payments, the co-conspirators reportedly created a slush fund known as the “Philippines Pot” and fabricated sham loan agreements to justify transfers to bank accounts in various countries. A significant portion of the illegal funds was used by a family member of the chairman to purchase property in San Francisco.
The investigation into the Smartmatic executives began in 2017 when the wife of the chairman disclosed to authorities in the Philippines that her husband had amassed $20 million in unexplained wealth, including cash found at their residence. Subsequently, the chairman was arrested last year on charges of accepting bribes in exchange for awarding contracts worth nearly $200 million to an unnamed company for the supply of voting machines for the 2016 presidential elections.
Despite denying any wrongdoing, the chairman’s arrest led to Smartmatic being banned from bidding on a contract to provide election technology for the 2025 Philippine election. In response, Smartmatic has placed the implicated employees on immediate leaves of absence and emphasized its commitment to election integrity.
Smartmatic, founded over two decades ago, gained prominence through contracts with the Venezuelan government and has since expanded its operations globally, overseeing elections in numerous countries. The company severed ties with Venezuela in 2017, citing government manipulation of election results.
The indicted executives, including Piñate and Jorge Miguel Vasquez, face charges of conspiracy to violate the Foreign Corrupt Practices Act and multiple counts of money laundering, carrying potential prison sentences. Smartmatic has also pursued legal action against media outlets and Trump allies for spreading false claims about its technology.
In conclusion, the indictment of Smartmatic executives underscores the importance of transparency and integrity in electoral processes. As the company navigates legal challenges and reputational damage, the focus remains on upholding democratic principles and combating misinformation surrounding election technology.
