USA: H-P to Pay $108 Million in Bribery Case Settlement

 The four-year investigation by the United States’ Justice Department and Securities and Exchange Commission (SEC) examined events that occurred between 2000 and 2010 in HP units in Russia, Poland and Mexico. 

The company pleaded guilty to violating the Foreign Corrupt Practices Act and agreed to the facts laid out by the government. 

Polish prosecutors accused an HP executive in that country of having paid more than US$ 500,000 in bribes to obtain contracts for computer equipment for Polish police. 

In Russia, HP’s subsidiary pleaded guilty to paying millions in bribes to gain multi-million dollar contracts with government agencies. 

In Mexico, H-P paid a $1.41 million "commission" to seal a software deal with Mexico's state-owned petroleum company, Pemex, during 2008 and 2009, prosecutors said.

According to the Wall Street Journal, bribes took the form of expensive trips, watches, jewelry, bags of cash and tours of the Grand Canyon. 

John Schultz, HP executive vice president and general counsel, said, “The misconduct described in the settlement was limited to a small number of people who are no longer employed by the company.” 

He said the company is willing to fully cooperate with the authorities. 

The Justice Department said that it acknowledged "the extensive anti-corruption remedial efforts" the company undertook, including penalizing the employees responsible. The company also agreed to improve its internal controls and report them to the Justice Department.

The penalty is among the harshest ever imposed on a U.S. company for violations to the Foreign Corrupt Practices Act, and it could suggest a more assertive enforcement of anti-corruption laws, the Journal reported.