US charges Smartmatic executives over alleged $1-M Philippine bribery scheme

• Photo from Smartmatic

By TechWatchPh

US federal prosecutors have indicted Smartmatic, its parent company SGO Corporation Ltd., and several top executives for allegedly paying over $1 million in bribes to a former chairman of the Philippine Commission on Elections (COMELEC) to secure contracts for the 2016 national elections.

The indictment, unsealed in a Florida federal court, accuses Smartmatic co-founder Roger Piñate, executives Jorge Vasquez and Elie Moreno, and former COMELEC chairman Juan Andres Donato Bautista of engaging in a bribery and money laundering scheme between 2015 and 2018.

According to U.S. prosecutors, Smartmatic executives created a “slush fund” by overpricing election equipment and services, then funneled the excess through shell companies and fake invoices to pay off the Philippine official. The indictment details a series of encrypted messages, disguised financial transactions, and sham loan agreements allegedly used to hide the bribes.

The U.S. Department of Justice said the scheme involved multiple international bank transfers through Hong Kong, Singapore, and the United States, allowing prosecutors to establish jurisdiction under American anti-corruption and money-laundering laws.

The charges include conspiracy to violate the Foreign Corrupt Practices Act (FCPA), substantive bribery counts, and conspiracy to commit money laundering. If convicted, the executives could face decades in prison and forfeiture of assets tied to the alleged crimes.

Prosecutors claim the former COMELEC chairman approved large payments and contracts in exchange for kickbacks disguised as consulting fees and “loans.” Messages cited in the indictment show discussions about splitting million-dollar transfers to avoid banking alarms.

Smartmatic, through its legal counsel, denied the allegations and called the case “wrong on the facts and wrong on the law.” The company described the charges as politically motivated and said it would vigorously defend itself in court.

The indictment marks the latest controversy involving the Venezuela-founded technology company, which has supplied election systems in more than 30 countries, including the Philippines. Smartmatic was the automation provider for the 2010, 2013, and 2016 Philippine elections.

Bautista, who has been living abroad since facing corruption allegations in the Philippines, has also been charged in the United States and remains at large.

U.S. authorities said the case underscores Washington’s commitment to fighting foreign bribery schemes that exploit global financial systems.

The case is being handled by the U.S. Attorney’s Office for the Southern District of Florida and the FBI’s International Corruption Unit.