The U.S. Department of Justice has unsealed an indictment charging the election technology company Smartmatic and its former Chief Executive Officer, Antonio Mugica, with a multi-year scheme to bribe a high-ranking Philippine election official. The indictment details charges of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), money laundering, and wire fraud.
According to the charges unsealed in the Southern District of Florida, the scheme allegedly ran from 2009 through 2017. The central allegation is that Smartmatic, through its former CEO and other employees, paid bribes to Andres Bautista, the former chairman of the Philippines’ Commission on Elections (COMELEC).
Details of the Alleged Bribery Scheme
The indictment alleges that these bribes were paid to secure lucrative contracts for Smartmatic to provide election technology and services for the Philippine national elections. The payments were reportedly funneled to Bautista through a series of intermediaries, shell companies, and fraudulent consulting agreements. These actions were intended to conceal the source and purpose of the funds.
The charges state that the corrupt payments were made to influence the awarding of contracts to Smartmatic, ensuring the company’s technology was used in the Philippine election system. The case falls under U.S. jurisdiction due to the alleged use of the U.S. financial system to facilitate the bribery payments.
Charges and Legal Framework
The Foreign Corrupt Practices Act (FCPA) is a U.S. federal law that prohibits American citizens and entities from bribing foreign officials to benefit their business interests. The indictment charges Antonio Mugica and Smartmatic with conspiracy to violate the anti-bribery and internal controls provisions of the FCPA.
In addition to the FCPA-related charges, the defendants also face counts of money laundering and wire fraud. Antonio Mugica, a Venezuelan citizen residing in Spain, faces a multi-count indictment for his alleged role in orchestrating the scheme. The unsealing of the indictment marks a significant development in the investigation into the company’s international operations.
Concise Cyber 