Monday, October 30, 2006

Probe of Election Machine Ownership

After the recent disclosure of Chicago voter rolls being open to hackers and possible identity theft, now we revisit the issue of foreign ownership of the voting machines. Related posts here, here. Prompted by previous coverage and broader security questions, the Committe on Foreign Investment has opened an inquiry.

Tribune here, no story in Sun Times? (What, didn't they get their talking points from the NY Times?) NY Times story here:
Smartmatic was a little-known firm with no experience in voting technology before it was chosen by the Venezuelan authorities to replace the country’s elections machinery ahead of a contentious referendum that confirmed Mr. Chávez as president in August 2004.

Seven months before that voting contract was awarded, a Venezuelan government financing agency invested more than $200,000 into a smaller technology company, owned by some of the same people as Smartmatic, that joined with Smartmatic as a minor partner in the bid.

In return, the government agency was given a 28 percent stake in the smaller company and a seat on its board, which was occupied by a senior government official who had previously advised Mr. Chávez on elections technology. But Venezuelan officials later insisted that the money was merely a small-business loan and that it was repaid before the referendum.

With a windfall of some $120 million from its first three contracts with Venezuela, Smartmatic then bought the much larger and more established Sequoia Voting Systems, which now has voting equipment installed in 17 states and the District of Columbia.

Simply the fact of foreign ownership is not damning. But these are American elections. And given Chicago and Cook County's history, extra oversight is welcome.

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