Philippines says plan for automated election on again

MANILA (Reuters) - The Philippines will hold automated presidential elections next year after the partners of a joint venture that won a $150 million deal to supply counting machines patched up their differences on Friday, officials said.

"We're back to automation," Jose Melo, head of the Commission on Elections (Comelec), told reporters after Filipino company Total Information Management signed a joint venture agreement with Barbados-based Smartmatic to supply 82,200 counting machines.

Lawmakers, political groups and analysts have previously cast doubts over the automated process. Many feared chaos due to potential machine breakdowns and delays in results transmission, which could lead to a failed election and political limbo.

But analysts say even manual counting would expose the elections to the likelihood of fraud. President Gloria Macapagal Arroyo has faced four attempts at impeachment on charges she cheated in the last presidential election in 2004.

Melo said the incorporation papers of the joint venture to supply vote counting machines will be filed before the Securities and Exchange Commission on Monday and the contract with Comelec will be signed on Friday, the final deadline to automate the elections in May 2010.

If no automation contract is signed by July 10, Melo said the Philippines will likely scrap the deal and hold elections manually.

The automation should provide results within two days of voting instead of the weeks it takes currently, the agency has said.

On Monday, Melo said the plan to automate polls was likely to be scrapped because Smartmatic's local partner broke off from the deal due to differences, but gave the partners until Friday to resolve their dispute.