Federal prosecutors in the United States have charged Smartmatic, a voting technology firm, with bribery and money laundering. The indictment stems from allegations that Smartmatic executives paid over $1 million in bribes to election officials in the Philippines. These payments were reportedly made between 2015 and 2018 to secure a government contract for the country’s 2016 presidential election.
Key Events and Charges
The recent legal developments were outlined in a superseding indictment issued in a Florida federal court. This marks a significant turn in an ongoing investigation involving Smartmatic.
- Charges Filed: Money laundering and bribery.
- Period of Bribery: 2015 to 2018.
- Contract Involved: Aimed at the Philippines’ 2016 presidential election.
Background of the Case
Three former executives of Smartmatic, including co-founder Roger Pinate, were charged previously in 2024. Notably, Smartmatic itself was not listed as a defendant at that time. Pinate, who remains a shareholder, has pleaded not guilty and no longer works at the company.
Smartmatic’s Defense and Ongoing Legal Battle
Smartmatic has issued a statement vehemently denying the allegations. The firm claims that it is a target of politically motivated actions and insists that the U.S. Attorney’s Office in Miami has been influenced by powerful interests. The company has stated:
- “This is again, targeted, political, and unjust.”
- “Smartmatic will continue to stand by its people and principles.”
Financial Controversies
As part of the indictment, prosecutors allege that revenues from a $300 million contract with Los Angeles County were improperly diverted. This diversion allegedly funded a slush fund controlled by Pinate through various means, including fake invoices and shell companies.
Additionally, prosecutors claim that Pinate bribed a Venezuelan election chief by gifting her an extravagant home in Caracas. This alleged bribery was reportedly an effort to mend relations after Smartmatic exited Venezuela in 2017, accusing the government of manipulating election results.
Implications for Smartmatic
Smartmatic’s present troubles come amid a separate legal battle regarding a $2.7 billion defamation lawsuit against Fox News. This lawsuit arises from accusations that Smartmatic was involved in rigging the 2020 U.S. presidential election. In its defense, Smartmatic maintains that its business was significantly harmed following false claims aired by the network.
As Smartmatic navigates these legal challenges, the outcome of the ongoing investigations and lawsuits will heavily influence its future operations and reputation in the global electoral technology market.
