Smartmatic Charged in Alleged $1 Million Philippines Bribery Scheme

Federal prosecutors in Miami have charged voting technology firm Smartmatic with money laundering and other crimes. The charges stem from an alleged scheme involving more than $1 million in bribes paid to election officials in the Philippines. This superseding indictment, returned on October 16, 2025, now includes the company itself as a defendant. The alleged bribery occurred between 2015 and 2018, targeting contracts related to the 2016 Philippine national elections. Prosecutors assert these payments were made to secure and retain business from the Commission on Elections (COMELEC) and ensure favorable financial terms. Smartmatic, known as SGO Corporation Limited, is implicated alongside its co-founder Roger Alejandro Piñate Martinez, executive Jorge Miguel Vasquez, and executive Elie Moreno. Juan Andres Donato Bautista, the former COMELEC Chairman, is also named as an alleged recipient of the bribes. The scheme reportedly involved creating a slush fund by over-invoicing the cost of voting machines supplied for the 2016 elections. To conceal the illicit payments, co-conspirators allegedly used coded language, fraudulent contracts, and sham loan agreements. Funds were then routed through various bank accounts located in Asia, Europe, and the United States, including within the Southern District of Florida. This complex financial maneuvering aimed to obscure the true nature of the transactions. Smartmatic has vehemently denied the allegations, issuing a statement that calls the charges "targeted, political, and unjust." The company asserts that the U.S. Attorney's Office has been misled by powerful, unnamed interests. While Piñate has pleaded not guilty, former COMELEC Chairman Bautista and executive Moreno remain at large as fugitives. The charges include conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and money laundering, carrying potential prison sentences of up to 20 years.

• **Background of Smartmatic in Philippines:** Smartmatic's involvement in Philippine elections began in 2010, consistently facing scrutiny over its technology and the integrity of its operations. The 2016 election contract, valued at over $180 million for approximately 90,000 voting machines, became the focal point of the alleged bribery scheme. The company has a documented history of controversies within the country, including an incident involving alleged script alteration in 2016.
• **Key Individuals and Their Roles:** The superseding indictment names several key figures. Roger Alejandro Piñate Martinez, Smartmatic's co-founder and former president, along with Jorge Miguel Vasquez, its former vice president of hardware development, and Elie Moreno, who oversaw Philippine contracts, are central to the charges. Juan Andres Donato Bautista, the former Chairman of the Commission on Elections (COMELEC) of the Philippines, is identified as the alleged recipient of the bribes.
• **Nature of the Allegations:** Prosecutors allege a sophisticated scheme where voting machines were over-invoiced by $10 to $50 per unit, accumulating an estimated $6 million in a slush fund. From this fund, over $1 million was purportedly paid to Bautista. The objective was to secure and retain lucrative contracts with COMELEC and ensure timely payments for Smartmatic's services.
• **Concealment Methods Employed:** To hide the illicit payments, the alleged co-conspirators utilized a range of deceptive practices. These included the use of coded language in communications, the creation of fraudulent contracts, and the establishment of sham loan agreements. The money was subsequently laundered through a network of bank accounts spanning Asia, Europe, and the United States, making it difficult to trace.
• **Broader Implications and Related Cases:** This federal case unfolds amidst Smartmatic's ongoing $2.7 billion defamation lawsuit against Fox News, which alleges false claims about the 2020 U.S. presidential election. Additionally, prosecutors have introduced evidence of a potential slush fund linked to a $300 million contract with Los Angeles County, although these specific allegations are not part of the current indictment.
• **Regulatory and Legal Context:** The charges against Smartmatic and its executives include conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and multiple counts of conspiracy to commit money laundering and international laundering of monetary instruments. The superseding indictment, which added Smartmatic as a corporate defendant, signifies an escalation in the federal government's investigation into the alleged corruption.
• **Smartmatic's Defense and Potential Future:** Smartmatic has issued a strong denial, asserting that the allegations are politically motivated and that the U.S. Attorney's Office has been misinformed. If convicted, the company faces severe penalties, including substantial fines, mandatory oversight, and potential restrictions on its ability to secure contracts with U.S. federal or state governments, which could significantly impact its global operations.
• **Impact on Philippine Elections:** The alleged bribery scheme profoundly undermines public trust in the integrity and fairness of the 2016 Philippine national elections. This incident adds to a long-standing history of concerns regarding electoral fraud in the Philippines, raising critical questions about the transparency and reliability of automated voting systems and democratic processes.