HP caught up in Russian bribery scandal

 

Paid millions to win 2003 contract?

Russian authorities have raided HP's Moscow office looking for evidence in a multi-million euro bribery investigation, according to a report in The Wall Street Journal.

The raid is part of an investigation led by German prosecutors into whether HP paid €8m ($11.6m) in bribes to secure a €35m ($50.9m) contract, said the report, citing people familiar with the matter.

The deal dates back to August 2003 and was struck to provide the Russian prosecutor general's office with a "state-of-the-art computer system" sold through a German subsidiary, the report alleged.

The system was designed to provide secure communications for prosecutors throughout Russia.

"This is an investigation of alleged conduct that occurred almost seven years ago, largely by employees no longer with HP," read an HP statement on the matter.

"We are co-operating fully with the German and Russian authorities, and will continue to conduct our own internal investigation."

German authorities are looking into whether HP executives funnelled bribes through a network of shell companies and offshore accounts.

HP reportedly learned of the investigation in December when German and Swiss authorities served the company with search warrants that named 10 suspects in the case.

HP said it had no further comment on the matter.

Copyright ©v3.co.uk


HP caught up in Russian bribery scandal
 
 
 
Top Stories
Meet FABACUS, Westpac's first computer
GE225 operators celebrate gold anniversary.
 
NSW Govt gets ready to throw out the floppy disks
[Opinion] Dominic Perrottet says its time for government to catch up.
 
iiNet facing new copyright battle with Hollywood
Fighting to protect customer details.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest Comments
Polls
In which area is your IT shop hiring the most staff?




   |   View results
IT security and risk
  26%
 
Sourcing and strategy
  12%
 
IT infrastructure (servers, storage, networking)
  21%
 
End user computing (desktops, mobiles, apps)
  15%
 
Software development
  26%
TOTAL VOTES: 335

Vote
Would your InfoSec team be prepared to share threat data with the Australian Government?

   |   View results
Yes
  57%
 
No
  43%
TOTAL VOTES: 139

Vote