Voting Machine Firms voluntarily seek US review

To co-operate with the federal government in its probe to determine whether Venezuelan government has any control or influence over the company's operations, Sequoia Voting Systems, Inc. and its parent, the Smartmatic Corporation, on Sunday announced that the companies have voluntarily submitted a notice to the U.S. Committee on Foreign Investment in the United States (CFIUS).

The factor which drew the attention of federal Government to initiate a probe against the Oakland, California based Sequoia Voting Systems, which built the electronic voting machines to be used in Chicago and Cook County’s commencing elections, is its foreign takeover in year 2005. And, in the centre of the probe is Sequoia’s parent company Smartmatic Corp., which reportedly has been linked to the leftist government of Venezuelan President Hugo Chavez.

After the news that suggested companies’ improper ties with President Chavez, and in order to let the U.S. Government to review Smartmatic's acquisition of Sequoia the companies have voluntarily filed a notice to the CFIUS. "No foreign government or entity, including Venezuela, has ever held an ownership stake in Smartmatic, and we have voluntarily filed with CFIUS to put to rest the baseless but persistent rumors about our ownership," said Antonio Mugica, Chief Executive Officer of Smartmatic.

Chavez, a sharp-tongued critic of George W. Bush, drew criticism from lawmakers of both U.S. parties after he called President Bush "the devil" in a highly controversial speech at the United Nations General Assembly, on 20 September 2006.

In a telephonic interview, Jeff Bialos, a Washington attorney representing the two firms, said, "Sequoia and Smartmatic are not connected, owned or controlled by the Venezuelan government whatsoever." He further said, "There's no basis for the allegations. We were trying to prove a negative, so the two companies voluntarily submitted a notice asking CFIUS to review the acquisition to put to rest the press allegations."

According to Smartmatic, the company is owned by three Venezuelans based in Boca Raton, Florida and these prime entrepreneurs are Antonio Mugica, a dual-Spanish-Venezuelan national and the chief executive officer (78.8%); Alfredo Anzola (3.87%); and Roger Pinate (8.47%). The other major investor is Jorge Massa (5.97%), a well-known French-Venezuelan businessman. Smartmatic employees and other friends own the remainder (2.89%).

Smartmatic and Sequoia said they have been cooperating with the government after initial questions were raised last spring. As per both the companies, they have voluntarily provided significant information to CFIUS on all aspects of the two firms' businesses and ownership and the security and integrity of Sequoia's voting solutions.

About their recent decision to seek a formal review, Antonio Mugica said, "As a company, we sought out a CFIUS review because we are confident it will clear the air so we can focus on what we do best, making the world's most secure and auditable voting solutions."
Sequoia, one of the largest providers of electronic voting systems in the US, currently provides electronic voting machines for 16 states as well as the District of Columbia.

Smartmatic provider of highly secure device networking technologies, is a privately-held, independent corporation with 300 employees across the world, and is an international leader in the provision of secure, reliable and auditable voting systems.

Smartmatic and Sequoia are due to hold a press conference today (Monday, October 30) at 2:00pm in Washington, DC, to present some more information on their voluntary filing, the company's ownership and operating structure and to take questions.