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HP's Moscow Offices Raided In Bribery Probe
FrankPoole writes "Hewlett-Packard's Moscow offices were raided Wednesday as part of a bribery investigation by Russian and German authorities. The news was first reported by The Wall Street Journal [currently paywalled; Reuters also covered it], which wrote that HP is suspected of allegedly paying out nearly $11 million in bribes to secure a major Russian government contract several years ago via a German subsidiary. Ironically, the contract was with the Prosecutor General's office of the Russian Federation, which will now play a role in investigating HP. While HP knew of the investigation as far back as December, the company did not disclose the information in any SEC filings. Instead, in its most recent quarterly report, HP states that in foreign nations 'it is common to engage in business practices that are prohibited by laws and regulations.'"
They didn't pay enough.
If someone says he and his monkey have nothing to hide, they almost certainly do.
HP states that in foreign nations 'it is common to engage in business practices that are prohibited by laws and regulations
Thank god they specified foreign nations, cause in the US that'd be wrong
Yeah. Would you choose a neurosurgeon who pokes around people's brains in his spare time? I wouldn't.
(i.e. "Bribes"). Yeah, HP, how did that work out for you? Too bad they can't claw back your bonus for *that* move.
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Indeed. In 3rd-world countries you must bribe if you want to compete because your competitors are bribing.
Table-ized A.I.
big business as it is normally done. Right?
In many other nations, the distinction between the laws on paper and accepted practices is much greater than it is in the United States (except maybe in Chicago or Philadelphia...). For instance, in most of the US, if you try to bribe a cop to get out of a traffic ticket, you're going to jail most of the time. In Mexico, the bribe -- la mordida -- is pretty much expected, and you're more likely to go to jail if you DON'T offer it, even though bribery is illegal in Mexico. So HP actually has a point here.
Looks like HP made the mistake of dealing with a dishonest politician... defined as one who won't stay bought.
It was Fiorina at the time.
If you link from /. it is paywalled. As always, if you link from Google, it is all free. Just paste WSJ headline into Google, and go:
http://www.google.com/search?q=H-P+Executives+Face+Bribery+Probes
First hit is the article in full.
Funny how Google is a better front end to WSJ than WSJ itself. Maybe WSJ is shooting itslef in the foot with this policy. (Same with Mercury News and others)
don't cut it off www.mgmbill.org
In many other nations, the distinction between the laws on paper and accepted practices is much greater than it is in the United States
Too bad for US corps, we have this law here called The Foreign Corrupt Practices Act that makes it illegal to bribe foreign officials.
When information is power, privacy is freedom.
While i didnt RTFA, but just to focus in on one aspect of the summary,
"HP states that in foreign nations 'it is common to engage in business practices that are prohibited by laws and regulations.'"
While they may have been wrong in this situation, the statement itself is very true; After spending some time in china for instance, bribery is certainly prevalent. Also when we examine the US system, with lobbyists and contributions... is it really that different?
Too bad for US corps, we have this law here called The Foreign Corrupt Practices Act that makes it illegal to bribe foreign officials.
Proof that the government hates competition.
I am the richest astronaut ever to win the superbowl.
This gives "Radia" a whole new meaning.
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Not to mention Cornhusker Kickback and Louisiana Purchase.
For sale, votes: Current price between $250,000,000 and $1,500,000,000 depending upon condition. Please see your nearest associate for details.
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Arthur Levitt: The longest-serving SEC chairman (1993 to 2001). Hired by Goldman in June 2009 as an adviser on public policy and other matters.
Set your phasers on "funky"!
That's not irony, that's corruption.
Instead, in its most recent quarterly report, HP states that in foreign nations 'it is common to engage in business practices that are prohibited by laws and regulations.'
Apparently they didn't read their own Ethics & Compliance materials. As a former HP employee, I can tell you that every year the employees are required to take an online course in Ethics and Compliance. Part of those materials mentions that HP won't participate in any activities that are expected practice in other countries, but forbidden in the US. The specific example of bribery was included. Furthermore, simply knowing that a partner or subsidiary is doing something unethical on behalf of HP is forbidden. The act of a business partner bribing a customer to secure a contract for HP was one of the examples. In fact, there were even videos with actors portraying these situations. Then again, maybe the training materials grew out of this specific case.
What are the model number for HP rocket launchers and suitcase nukes? I've heard they are quite popular outside of the US, except for the rather expensive refill rockets and plutonium, but some third parties offer them a bit cheaper, although with no warranty.
Bribe prosecutor's office to get contract and get prosecuted by the office.
Somebody needs to up their bribe-fu.
Fuck systemd. Fuck Redhat. Fuck Soylent, too. Wait, scratch the last one.
Not so much greater as they're just different. See lobbying/campaign contribution/etc.
Fuck systemd. Fuck Redhat. Fuck Soylent, too. Wait, scratch the last one.
Well, as true as your statement may be, it doesn't make bribery ok. Government officials in China have been executed for accepting bribes. If you have to bribe someone, you should make sure that you can't be convicted for it.
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I hope these individuals are dealt with with the verocity China sets forth on individuals breaking laws of this caliber.
It amazes me how ethical behavior has taken a back seat to profits (see: Massey Energy, Maydoff, and the cause of that... oh what was that thing... uh, oh yea, global recession).
How many of you were awstruck when Google pulled out of China? I was taken aback. Shocked that I was shocked. And I asked myself why that is?At the threat of losing a huge financial opportunity, I was amazed that a company didn't take it lying down. They said 'F you' and threatened them back.
That's the way it should be and the world needs more of it.
Respect +10, Google.
in the USA that is normal, it is called campaign contributions, or business investments. isn't capitalism grand?; where everything has a price (even your soul)
Politics is Treachery, Religion is Brainwashing
Those dealing with such countries are stuck between a rock and a hard place. If they don't bribe they won't suceed, if they do bribe and someone decides to make an example of them for whatever reason then they may end up doing time.
note: i'm known as plugwash most places but i screwd up registering that here somehow in the past and now can't register
I think that punishing the people who accept bribes is more important than punishing those who bribe. It's not really fair, but if the financial climate requires bribery then obviously something is wrong. Punishing business interests for trying to succeed could lead to lowering the incentive to do business within the region. But by making sure that no one wants to accept a bribe, then you change the business climate. People accepting bribes are the real criminals.
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HP obviously missed the Prosecutor General's memo that he needed a bigger bribe....
Which effectively prevents a US corp from doing business in many countries if held to, including Mexico, Russia, China, etc. It is not more meant to be obeyed than the laws against bribery in the nations where bribery is the de facto method of doing business. It's just a hammer for somebody to use if you piss off somebody. You go to China but you can't do business unless you pay the bribes but if you (or the person you paid the bribes to) ever piss off the wrong person in government, then they'll hit you with those bribes they demanded. Then the US government will go "gosh, we can't support that", and the hit you with their hammer too as a form of appeasement to various parties. Just like many of the laws in the US and the powers passed after 9-11, they expect you to break something, simply because they want to have something to use against you if they need the excuse.
Those dealing with such countries are stuck between a rock and a hard place. If they don't bribe they won't suceed, if they do bribe and someone decides to make an example of them for whatever reason then they may end up doing time.
And that, ladies and gentlemen, is why corruption destroys national economies. Investors and multinationals understand this fact, and only the most desperate or stupid choose to do business in such an environment.
Russia has been hanging foreign and domestic corporations out to dry for a decade using the corruption catch-22. NTV, Yukos... I'll go out on a limb and say that any foreign corporation doing business in Russia is insane. Sorry, my Russian Slashdot friends, you're great people, but your government is a business deathtrap.
http://www.reuters.com/article/idUSTRE62E1SU20100315
"My recommendation is: 'Maybe you should reconsider doing business in Russia,'" she said. "I am considerably more optimistic about Nigeria than I am about Russia on this issue."
Sounds good. So what do you do if the "people who accept bribes" are the same as the people in charge of prosecuting bribery?
This is not a hypothetical question.
Really the only difference between countries in their bribery and government contracts is the how they go about it. It's like the difference between a girlfriend who's only there for your bank account (assuming you both know that's the reason), a high-priced call girl, a middle-class hooker, and a crackwhore. They're all selling it. The only difference is in the terms used and how likely you are to lose your wallet to the pimp.
Good point. In that case, I'd say that you're pretty much screwed. Unless you have some kind of secret police watching the people in charge of prosecuting bribery. Although I can't say I like the idea of secret police all too much...
"Quis custodiet ipsos custodes?"
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Quote:
One of the things I have always found troubling about Westerners doing business in emerging market countries is that they sometimes take an almost perverse pride in discussing payoffs to government officials. It is as though their having paid a bribe is a symbol of their international sophistication and insider knowledge. Yet, countless times when I am told of the bribe, I know the very same thing could almost certainly have been accomplished without a bribe.
Source: Chinalawblog.com.
Shutting down free speech with violence isn't fighting fascism. It IS fascism!
You go to China but you can't do business unless you pay the bribes
Isn't the ethical solution to get back out of China?
And I'm speaking as an emigrant out of Russia, where I came to detest the pervasive corruption.
My exception safety is -fno-exceptions.
Good news! Russia *does* have some secret police watching out for this sort of issue. Their job is to KILL YOU when you start to complain about this problem.
http://www.cpj.org/killed/europe/russia/
http://www.rferl.org/content/article/1071933.html
It's really a question with no good answer.
A governement trying to weed out corrution could set up an independent body to investigate crimes commited by law enfocement but there is of course the risk of that becoming corrupt too.
note: i'm known as plugwash most places but i screwd up registering that here somehow in the past and now can't register
I don't know about other countries, but in Russia, the laws are commonly stacked up such that you simply can't do business if you don't cough up the bribe - they'll close you down otherwise, because if you don't break law A, you're breaking law B (which directly contradicts A).
You can't even catch a corrupt official red-handed anymore. Not so long ago, they've enacted the law that using any concealed audio or video recording or transmitting device while dealing with a government official is a crime (which can be punishable by up to 3 years in jail). Notices to that effect adorn doors of many offices of higher-profile officials - I've seen a bunch myself.
Next time someone replies to a troll like this just to get your comment higher on the page, I'm going to mod you off-topic, because you're off the topic that you're replying to. Unfortunately I won't be able to leave a comment explaining why. You want to top-post on this story, you're going to have to come up with some sort of kathleen fent-related content.
Your comment is not more worthy than anyone else's comment until it has been judged so by the community. You're just not special, sorry if no one has told you that before.
Go ahead, mod me off-topic, I'll come back stronger than ever.
I did a business analyst internship with Weyerhaeuser, and their corporate policy specifically allows gifts to be given to business partners, vendors, and government officials whenever "the local custom or culture dictates."
There are a huge number of yeast infections in this county. Probably because we're downriver from the bread factory.
Just read the history of Richard Branson and Virgin Records. They found it was cheaper to break the law and pay the fines than sell legal records, and they made a boat-load of money doing just that.
No trespassing. Violators will be shot. Survivors will be shot again.
You go to China but you can't do business unless you pay the bribes but if you (or the person you paid the bribes to) ever piss off the wrong person in government, then they'll hit you with those bribes they demanded. Then the US government will go "gosh, we can't support that", and the hit you with their hammer too as a form of appeasement to various parties.
If the contract is large enough, the government will step in and do the bribery itself (but then it's probably legal).
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Made from the freshest electrons.
Wow. Interesting to hear about, as I've long considered that the only way we will reduce corruption in the US is to have 24/7 surveillance of our elected officials, available for anyone to view (like a YouTube CSPAN).
Of course, they're the ones passing the laws, so they'll never allow something like that, was also my thinking.
But this is a further step -- passing a law actively against that model. The Russians are creative.
I feel fantastic, and I'm still alive.
And finding the proprietary ramchip upgrades is a pig...
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