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Why is Hugo Chávez Involved With U.S. Voting Machines?
RealClearPolitics ^ | March 28, 2006 | Richard Brand

Posted on 03/28/2006 9:32:53 AM PST by RWR8189

 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 Chávez 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 Chávez 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-Chávez 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 Chávez's 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 Chávez-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 Chávez had been defeated 59 to 41 percent; however, when official tallies were announced, the numbers flipped to 58-42 in favor of Chávez. 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 Chávez 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. Email: rmb381@nyu.edu

This article first ran in The Miami Herald. It is reprinted with the author's permission.



TOPICS: Crime/Corruption; Editorial; Foreign Affairs; Government; News/Current Events; Politics/Elections
KEYWORDS: cfius; chavez; electionfraud; hugochavez; hugoping; sequoia; smartmatic; venezuela; votingmachines
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To: Paul C. Jesup

not enough men left in America for that.


41 posted on 03/28/2006 10:51:12 AM PST by Stopislamnow (Muslims are heading full speed down the road to annihilation. We'll grow the stones eventually.)
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To: Paul C. Jesup
This is not going to end well and if the next election may NOT turn out well. Also, if all Red states go blue next election, we now know how they cheated.
---
Which knowledge will do us precisely no good.
42 posted on 03/28/2006 11:06:03 AM PST by Cheburashka (World's only Spatula City certified spatula repair and maintenance specialist!!!)
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bookmark


43 posted on 03/28/2006 11:12:52 AM PST by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: Shermy; livius

ping


44 posted on 03/28/2006 11:15:26 AM PST by marron
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To: neverdem

WTF???


45 posted on 03/28/2006 11:34:41 AM PST by King Prout (many complain I am overly literal. this would not be a problem if so many were not under-precise)
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To: SittinYonder

... still trying to figure out how "Chad" got pregnant... :^D

Side note: at the time I knew a woman from Florida going to Chad for missionary work... I warned her to "be careful; I hear they hang Floridians in Chad


46 posted on 03/28/2006 11:43:08 AM PST by dangus
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To: RexBeach
Because he can't get anyone else to date him?

I don't know that I would label it as 'feminine', but I imagine that he wouldn't have any problems taking it out for a night on the town.


47 posted on 03/28/2006 11:53:22 AM PST by proud_yank (Liberalism - The 'Culture of Ignorance'.)
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To: Stopislamnow
not enough men left in America for that.

Maybe where you live, but not where I live in the U.S.

48 posted on 03/28/2006 12:03:46 PM PST by Paul C. Jesup
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To: Cheburashka

I messed up in that sentence. Drop the "if" word in the first sentence, it should make more sense now.


49 posted on 03/28/2006 12:05:29 PM PST by Paul C. Jesup
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To: warchild9
The Federal Reserve is run by his descendants, with six other banking families, without any interference from our government in any way.

No Rothschilds --or any other foreigners-- have anything to do with the Federal Reserve. The popular urban legend is debunked here.

50 posted on 03/28/2006 12:13:07 PM PST by Lurking Libertarian (Non sub homine, sed sub Deo et lege)
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To: CedarDave
NM's return to paper ballots looking better all the time

Thanks. Every time I get to thinking that we might escape 3rd-world status around here, I think of that or something else like it.

Rio Arriba County will still have more voters than residents-no matter what.

51 posted on 03/28/2006 12:13:26 PM PST by elkfersupper
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To: Lurking Libertarian

Look up "cognitive dissonance" in the dictionary.

All politics is run by the Golden Rule: he who has the gold makes the rules. Always has, always will.


52 posted on 03/28/2006 12:34:52 PM PST by warchild9
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To: RWR8189

Yet another good example of why voting electronic machines should be open source.


53 posted on 03/28/2006 1:35:23 PM PST by zeugma (Anybody who says XP is more secure than OS X or Linux has been licking toads.)
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To: RWR8189

It appears that our government has lost all common sense, let alone its obligation to protect its' citizen's.

Th right to a clean election will be going down the drain, along with the invasion of immigrants under the new amnesty being prepaired by the Senate.

It is clear we will all be forced to town hall government to survive in our own beds.

Back to the basics, follow what our forefathers had to do from 1773 to 1776.

Ops4 God Bless America!


54 posted on 03/28/2006 3:30:49 PM PST by OPS4 (Ops4 God Bless America!)
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To: Lurking Libertarian

B.S> Rotschilds group has many names, but the robber barons are still in charge.

The International Bankers would sell thier mothers, and in fact have.
Ops4 God Bless America!


55 posted on 03/28/2006 3:32:17 PM PST by OPS4 (Ops4 God Bless America!)
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To: OPS4

bttt


56 posted on 03/28/2006 3:41:43 PM PST by ConservativeMan55 (DON'T FIRE UNTIL YOU SEE THE WHITES OF THE CURTAINS THEY ARE WEARING ON THEIR HEADS !)
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To: proud_yank
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.

I think that a little company with no election experience that becomes a major player in the elections after Chavez gives them $100 million contract is unreliable.

57 posted on 03/28/2006 7:14:31 PM PST by Victoria Delsoul
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To: Paul C. Jesup

sign me up, I've had it.


58 posted on 03/29/2006 6:26:01 PM PST by Stopislamnow (Muslims are heading full speed down the road to annihilation. We'll grow the stones eventually.)
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