HP insiders accused of paying EUR 35 mln in bribes to Russian government
IT giant Hewlett-Packard revealed an investigation over bribe payments to the Russian government related to public contracts, with an estimated value of EUR 35 mln, according to anti-corruption compliance portal, FCPA Blog.
“The German Public Prosecutor’s Office has been conducting an investigation on allegations of HP’s former and current employees suspected in EUR 35 million shady transactions to the Russian government, where HP was contracted to install an IT network. Apart of bribery, HP’s employees are also suspected in tax evasion and the breach of trust,” according to FCPA Blog’s authors.
The investigation was referred to as the “Russia GPO deal,” which covered the period of 2001-2006.
Currently, the German PPO together with the US Department of Justice and SEC has been investigating suspected employees. As an associated party, HP will participate in court proceedings and may be a subject to the disgorgement of profits, according to FCPA Blog.
Potential FCPA violations are also being investigated by the Polish Central Anti-Corruption Bureau in order to determine whether violations were made by the employees of HP Poland, a subsidiary of HP.
HP expressed its willingness to cooperate with the investigators and is currently participating in advance discussions with the US enforcement agencies, the FCPA Blog reported.