Conflict of interest: Comelec-F2 Logistics deal met with controversy
By Mai Allauigan and Alexandra Kate Ramirez
The Commission on Elections (Comelec) on October 29 inked a ₱535.999-million contract with F2 Logistics, currently chaired by businessman Dennis Uy, on the deployment of election equipment. The deal promptly alarmed poll watchdogs, as well as progressive groups and individuals, amid fears of compromising the 2022 national elections due to a possible conflict of interest. Despite the backlash, however, the election body insisted that there were no grounds yet for the rescission of the contract.
Seal the deal
F2 Logistics, a firm linked to a few campaign donors and a close associate of President Rodrigo Duterte, was chosen for the transportation of election paraphernalia this 2022.
A 2020 annual report of Chelsea Logistics listed Dennis Uy as chairman of F2 Logistics. Coming from the President’s hometown, Davao, Uy was among the top campaign contributors, donating ₱30M ($593,000) in cash to Duterte’s 2016 Malacañang bid.
Apart from Dennis, two other Uys and ranking officials of F2 Logistics also contributed to Duterte’s 2016 presidential campaign. Efren Uy, currently serving as the president and chief executive officer of the firm, and corporate treasurer Cherylyn Uy donated ₱3.5M and ₱1M, respectively.
Initially pegged at a maximum price of P1.61 billion, the contract was won by the company last August after it bid the lowest amount and bested three other firms in the process.
Under the agreement, F2 is responsible for the nationwide deployment of all forms, supplies, peripherals, and automated election system-related equipment. They are likewise prohibited from bumping off, halting, or refusing to deliver unless absolutely necessary.
Although they were also granted a warehousing provision in relation with their deliveries, Comelec spokesman James Jimenez clarified in a tweet that the vote-counting machines (VCMs) are to be contained in a separate warehouse.
Call to cancel
The deal has alarmed poll watchdogs and various critics for potential conflict of interest. Senator and former election lawyer Leila de Lima pointed out that Uy was linked with the recent Pharmally Pharmaceutical Corp. fiasco, and bared that he is a favored crony as he became a key business player in government contracts ever since Duterte came into power.
In line with this, she previously filed Senate Resolution №855 to ensure that the awarding of government contracts and the election processes are compliant with the country’s procurement laws.
Poll watchdog Legal Network for Truthful Elections (Lente) and Vice President Leni Robredo’s camp continued to urge the Comelec to be transparent and assure safeguards for the upcoming elections.
Moreover, poll watchdog Kontra Daya called on the election body to cancel the deal. They pressed that it was no longer an issue of legality but propriety amid a clear disregard for a conflict of interest case.
Laban Masa, a coalition of progressive organizations and individuals chaired by Vice Presidential aspirant Walden Bello, also released a statement calling for accountability and the cancellation of the deal.
“We also call for continued and intensified vigilance from civil society and the public to protect the integrity of our vote — our will. The power of the people should prevail — not the power of cronies, lackeys, and other vested interests,” Laban Masa said in a Facebook post.
No violations
Despite the public outcry, the Comelec defended and stood by its decision to enter into a contract with the cargo forwarder. They asserted last November 3, that there were neither conflict of interest nor legal grounds to cancel the deal with F2 Logistics.
“There would have to be a violation of terms of conditions of the contract. There would have to be some sort of violation by F2, or a change in circumstances all of a sudden that there is no need in the Comelec for the contract, I suppose a case can be made for rescission then,” Jimenez said in an ANC interview.
He also said that the Comelec’s special bids and awards committee (BAC) looked into the matter during the post-qualification assessment and confirmed that there were no grounds for conflict.
Comelec commissioner Rowena Guanzon also said that companies that donated to winning candidates cannot be automatically disqualified.
Election results
While netizens expressed their fears of the deal tampering with the May 2022 election results, Comelec presses that F2 does not have any means of affecting the outcome as the important supplies related to these outcomes are in Comelec’s hands.
They also added that all processes will be witnessed and monitored closely.
Moreover, senatorial aspirant Jose Manuel “Chel” Diokno stated that an “overwhelming” number of votes for the opposition will make manipulating the poll outcome a difficult task.
