[Clips] Why is Hugo Chavez Involved With U.S. Voting Machines?

--- begin forwarded text Delivered-To: clips@philodox.com Date: Tue, 28 Mar 2006 16:32:09 -0500 To: Philodox Clips List From: "R. A. Hettinga" Subject: [Clips] Why is Hugo Chavez Involved With U.S. Voting Machines? Reply-To: rah@philodox.com Sender: clips-bounces@philodox.com Again, boys and girls, spoken slowly: With electronic voting, you can either have secret ballots, or not sell your vote, but not both. With equity, it doesn't matter. The whole *point* is to sell your ballot. Thus, once again, financial cryptography is the only cryptography that matters. :-). And political cryptography, like politics itself, is proven, once again, to be about nothing more than fraud and extortion. Cheers, RAH ------- http://www.realclearpolitics.com/printpage/?url=http://www.realclearpolitics... RealClearPolitics March 28, 2006 Why is Hugo Chavez Involved With U.S. Voting Machines? By Richard Brand The greater threat to our nation's security comes not from Dubai and its pro-Western government, but from Venezuela, where software engineers with links to the leftist, anti-American regime of Hugo Chavez are programming electronic voting machines that will soon power U.S. elections. Congress spent two weeks overreacting to news that Dubai Ports World would operate several American ports, including Miami's, but a better target for their hysteria would be the acquisition by Smartmatic International of California-based Sequoia Voting Systems, whose machines serve millions of U.S. voters. That Smartmatic -- which has been accused by Venezuela's opposition of helping Chavez rig elections in his favor -- now controls a major U.S. e-voting firm should give pause to anybody who thinks that replacing our antiquated butterfly ballots and hanging chads will restore Americans' faith in our electoral process. Consider the lack of confidence Venezuelans have in their voting system. Anti-Chavez groups have such little faith in Smartmatic's machines that they refuse to run candidates in elections anymore as reports surface of fraud and irregularities from Chavez 2004 victory in a recall referendum. Yet somehow Smartmatic International and its Venezuelan owners were able to purchase Sequoia last year without the deal receiving any scrutiny from federal regulators -- including the Treasury Department's Committee on Foreign Investments in the United States (CFIUS), which is tasked with determining whether foreign takeovers pose security risks. CFIUS generally investigates such transactions only when the parties voluntarily submit themselves to review -- which Smartmatic did not do. But it retains the authority to initiate an investigation when it suspects a takeover compromises national security. Smartmatic has a brief but controversial history. The company was started in Caracas during the late 1990s by engineers Antonio Mugica and Alfredo Anzola. They worked out of downtown Caracas providing small-scale technology services to Latin American banks. Despite having no election experience, the tiny company rocketed from obscurity in 2004 after it was awarded a $100 million contract by the Chavez-dominated National Electoral Council to replace Venezuela's electronic voting machines for the recall vote. When the council announced the deal, it disingenuously described Smartmatic as a Florida company, though Smartmatic's main operations were in Caracas and the firm had incorporated only a small office in Boca Raton. It then emerged that Smartmatic's ''partner'' in the deal, Bizta Corp., also directed by Anzola and Mugica, was partly owned by the Venezuelan government through a series of intermediary shell corporations. Venezuela initially denied its investment but eventually sold its stake. When the vote finally came, exit polls by New York's Penn, Schoen & Berland Associates showed Chavez had been defeated 59 to 41 percent; however, when official tallies were announced, the numbers flipped to 58-42 in favor of Chavez. Venezuela's electoral council briefly posted machine-by-machine tallies on the Internet but removed them as mathematicians from MIT, Harvard and other universities began questioning suspicious patterns in the results. Flush with cash from its Venezuelan adventures, Smartmatic International incorporated in Delaware last year and purchased Sequoia, announcing the deal as a merger between two U.S. companies. Smartmatic says the recall vote was clean and that it is independent of the Chavez government. Responding to my inquiries, Smartmatic-Sequoias sent a written statement: ``Sequoia's products consist only of voting devices and systems, all of which must be federally and state tested and certified prior to use in an election. As Sequoia's products do not have military, defense or national security applications, they do not fall within the parameters of the matters governed by CFIUS.'' In fact, Smartmatic International is owned by a Netherlands corporation, which is in turn owned by a Curacao corporation, which is in turn held by a number of Curacao trusts controlled by proxy holders who represent unnamed investors, almost certainly among them Venezuelans Mugica and Anzola and possibly others. Why Smartmatic has chosen yet again to abuse the corporate form apparently to conceal the nationality and identity of its true owners is a question that should worry anyone who votes using one of its machines. Congress panicked upon hearing that our ports would be run by an American ally, Dubai, but never asked whether America's actual enemies in Venezuela have been able to acquire influence in our electoral process. Richard Brand is a second-year law student at New York University and a former staff writer for The Miami Herald. This article first ran in The Miami Herald. It is reprinted with the author's permission. -- ----------------- R. A. Hettinga The Internet Bearer Underwriting Corporation http://www.ibuc.com/ 44 Farquhar Street, Boston, MA 02131 USA "... however it may deserve respect for its usefulness and antiquity, [predicting the end of the world] has not been found agreeable to experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire' _______________________________________________ Clips mailing list Clips@philodox.com http://www.philodox.com/mailman/listinfo/clips --- end forwarded text -- ----------------- R. A. Hettinga The Internet Bearer Underwriting Corporation http://www.ibuc.com/ 44 Farquhar Street, Boston, MA 02131 USA "... however it may deserve respect for its usefulness and antiquity, [predicting the end of the world] has not been found agreeable to experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'