HP's Moscow office raided in bribery probe

HP is alleged to have paid millions in bribes to secure a government IT contract

Russian authorities raided HP's Moscow offices Wednesday looking for clues in a multimillion-dollar bribery investigation.

In question is a €35 million ($47.8 million) contract to provide a "state-of-the-art computer system designed to provide secure communications for prosecutors throughout Russia," The Wall Street Journal reported Wednesday. German and Russian investigators are looking into allegations that HP paid €8 million in bribes to secure the deal, which dates back to August 2003.

An HP spokeswoman confirmed a company office in Russia was the subject of a search.

"This is an investigation of alleged conduct that occurred almost seven years ago, largely by employees no longer with HP. We are cooperating fully with the German and Russian authorities and will continue to conduct our own internal investigation," she said in an e-mail.

German prosecutors are following a complex network of payments and shell companies leading through the U.K., Latvia, Lithuania, Austria, Switzerland, as well as the U.S., according to the Journal, which cites German court documents and unnamed sources in its report.

Corruption is widespread in Russia, and U.S. companies can find it difficult to distance themselves from partners or subsidiaries who engage in bribery, which is illegal in the U.S.

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.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags HP

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Robert McMillan

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?