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Romania Jails Ex-Minister Over Microsoft Licenses

"A former minister and three others have been handed jail sentences for corruption in Romania in a case linked to Microsoft software licenses," reports Balkan Insight. Prosecutors said the officials had embezzled the entire 47% discount Microsoft offered the Romanian government in a five-year, $105 million contract to supply schools and other public institutions with Microsoft Office licenses. Jail terms up to three years were also handed to a former mayor and two other businessmen who acted as middlemen, and the four defendants were also fined almost 10 million euros. While the court's sentence is not final, "prosecutors said there was manifest corruption in the contract," the article reports, with the officials admitting to the charges in exchange for a one-third reduction in their jail sentences.

69 comments

  1. Correction by penguinoid · · Score: 4, Insightful

    Romania Jails Ex-Minister Over embezzlement.

    --
    Don't waste your vote! Vote for whoever you want, unless you live in a swing state it won't matter anyways
    1. Re:Correction by fustakrakich · · Score: 1

      Woof! Talk about *the assassin accusing the assassin*!

      --
      “He’s not deformed, he’s just drunk!”
    2. Re:Correction by Sax+Russell+5449D29A · · Score: 2

      He'll probably write a couple of books in the months to come.

      --
      -SR
    3. Re:Correction by WarJolt · · Score: 3, Interesting

      Romania Jails Ex-Minister Over embezzlement.

      Yeah, but they had to throw Microsoft in the title because this is /. after all. Microsoft discounts are immaterial to this case, but it helps it get posted here. These guys stole money by committing fraud. I'm sure they tried to hide their tracks in a number of different ways before finding this latest trick that got them caught.

    4. Re:Correction by Teun · · Score: 4, Insightful

      I believe the MS part is significant for transparency as a 47% discount means their catalogue price is fully unrealistic and others should be able to follow up.

      --
      "The likes of Facebook and WhatsApp are free to those whose privacy is of zero value."
    5. Re:Correction by Anonymous Coward · · Score: 0

      They can, education and government pricing is generally fully available information.

    6. Re:Correction by Anonymous Coward · · Score: 1

      For "Enterprise" software the list price means nothing, normal "discounts" are huge (50-75%).

    7. Re:Correction by Anonymous Coward · · Score: 2, Interesting

      > Correction: Romania Jails Ex-Minister Over embezzlement.

      And what do you think that lower TCO for proprietary software was about?

      "Be dumb because it's cheaper in the short term." Duh! Just buying that kind of talk is indicative of less transparency -- at least.

      Having worked at an M$ shop, I can assure there are reasons to buy Microsoft: because they create so many incompatibilities that shills start to say "it's a Microsoft network". There's no such standard, but given enough "tweakings" you can transmute Ethernet into a different beast.

      I miss a more solid Linux offering for corporate desktops; I wonder what is the best option for that these days. There's too much hoopla about end-user gorgeous alternatives, but we get to know very few details about Red Hat Enterprise Desktop, Open Suse and the like (I'm not talking about Fedora or any other community version). Besides not much discussion, many are paid and thus really difficult to discuss / explore / test / enhance etc.

      Kudos to Germany for flipping the bird to M$(*) or Romania for having the spheres to finally putting someone in jail. IMHO, if we started to do that long ago there would be less problems in IT.

      Next time you have to go through hoops and loops to make Libreoffice compatible with M$ Office, think about why it's costly to do all that. Think why your organization cannot define a freely available format like ODT, make some fonts standard which are not from Microsoft or Apple (hint: there's a lot, many even are free), use inter-operable formats like pdf. Think why everyone must do extra-work to appease Microsoft.

      (*): I write M$ to make clear it's not a tech company. If you find that childish, well, that tells us a lot about how you were when younger, isn't it?

    8. Re:Correction by Anonymous Coward · · Score: 0

      Yeah, i would see 47% discount and immediately know that we weren't talking Oracle or Cisco.

    9. Re:Correction by Njorthbiatr · · Score: 1

      I'm surprised, really, that those of you who support open source so strongly often default to Libre Office so swiftly as a quintessential example of how open source is so much better. Here's a tip: it just makes you sound ignorant and biased, not educated and thoughtful. So does using "M$" instead of MS.

      Libre Office isn't better than MS Office, so it's a pretty bad example. And no, I won't accept your supposed arguments why it's not, because that's just an idiotic bias talking.

      There are many excellent examples of open source software that are superior to what MS offers. Like Firefox!

      What I hate more than anything is having open source shoved down my throat like it's always superior. I've spent enough time in a hell called Eclipse when using IntelliJ would have saved me many headaches. So just drop this childish favoritism. Use what works. Use what's best. I have a list of software that I use for various things. Some are from MS, some are paid software, and quite a few are open source projects. Because unlike you, I don't suffer from the delusion that software is inferior because it was made by some corporation.

    10. Re:Correction by lucm · · Score: 1

      Yeah, i would see 47% discount and immediately know that we weren't talking Oracle or Cisco.

      Because you can put a figure or discount % on Oracle software?

      Oracle pricing is an art, not a science, and has no basis in reality. The reps make up obscene numbers then jack up the extra cost of various mysterious options and terms until they reach the sweet spot, which is in that narrow window between the client starting to shit bricks and the client starting to shit razor blades.

      --
      lucm, indeed.
    11. Re:Correction by lucm · · Score: 1

      There are many excellent examples of open source software that are superior to what MS offers. Like Firefox!

      +1 Funny

      --
      lucm, indeed.
    12. Re:Correction by rtb61 · · Score: 1

      That kind of embezzlement doesn't just happen by accident. Someone plotted and planned and made it accessible and that someone would have been the M$ sales reps, not to blame M$ America but certainly their local reps were in it collecting the sales commissions and bonuses, right up to their necks. So interesting to see suspicions confirmed about why M$ has been able to survive so long against FOSS. Not that M$ international is playing but local branches up to all sorts of shenanigans to pump up commissions and bonuses, this versus those local players making basically abso-fucking-lutely nothing, no commission, no bonus, not even a salary if those governments use FOSS instead. Interesting to see how that corruption is built into driving closed source proprietary software rather than using Free Open Source Software, rather than corporate activity, simply activities tied to the very nature of software licences feeding into and driving corrupt practices.

      --
      Chaos - everything, everywhere, everywhen
    13. Re:Correction by invictusvoyd · · Score: 1

      $105 million could buy the best consultants in the industry to deploy a Libre solution .

    14. Re:Correction by Dcnjoe60 · · Score: 1

      Romania Jails Ex-Minister Over embezzlement.

      Yeah, but they had to throw Microsoft in the title because this is /. after all. Microsoft discounts are immaterial to this case, but it helps it get posted here. These guys stole money by committing fraud. I'm sure they tried to hide their tracks in a number of different ways before finding this latest trick that got them caught.

      The prosecutors said there was much corruption in the contract. That would be the contract that Microsoft was party to, would it not? As such, naming Microsoft would be appropriate.

    15. Re:Correction by Coren22 · · Score: 1

      You don't believe Firefox is better than Internet Explorer, or Edge?

      --
      APK likes to ask for responses to the same things over and over. Maybe he just likes the responses?
  2. Governments must stop paying private industry... by Anonymous Coward · · Score: 0

    ...and make it a priority to employ people to produce products and services directly.

    Public-private partnerships, aka corporatism, aka fascism, makes for the worst corruption.

  3. Wait a minute... by Max_W · · Score: 1

    Isn't it how IT industry sales de facto work, - including kick-backs into contracts?

    1. Re:Wait a minute... by Aighearach · · Score: 1

      Kickbacks are supposed to go to the client entity, not to the employee. ;)

      The part where you said "into contracts." Different than, "into some guy's back pocket."

    2. Re:Wait a minute... by Anonymous Coward · · Score: 0

      > Kickbacks are supposed to go to the client entity, not to the employee. ;)

      Nope. That is not enough.

      As I myself learned, purchases by government are made through a complex procedure aimed at being as fair as possible to all competitors.

      Kickbacks can and have been reason for suits which nullified contracts, because some competitors felt themselves at disadvantage, even when said kickbacks go to the organization and not to an employee.

      Favoritism is not acceptable.

  4. Shocking by Anonymous Coward · · Score: 0

    Everyone is embezzling money from someone. Nothing new there. Shocked... Shocked to find gambling going on in here.

  5. Only on Slashdot by Anonymous Coward · · Score: 0

    Would the article posted make us think Microsoft is actually doing the prosecuting.

    Because you know this is news for nerds, and stuff that matters doesn't include basic scams and corruption on foreign soil.

    1. Re:Only on Slashdot by Anonymous Coward · · Score: 0

      What's the matter, good buddy? Did you run out of Jenny McCarthy Candie's shoe ads to fap to?

  6. Corporate corruption meets government corruption by Anonymous Coward · · Score: 0

    This is why you need an independent auditing office, that can ask the tough questions to the people at the highest levels and it helps if they have some teeth too. Surely this contract must have gone through some official tender system, I guess that is what revealed this whole problem in the first place. I doubt just one or two people made money off this when it's hundreds of millions.

  7. Re:Governments must stop paying private industry.. by Anonymous Coward · · Score: 0

    So, if they are out of paper in a printer, they need to open up a paper mill?

    Of course, they will need to open a factory to manufacture the printer too, which would be really cost effective for a limited run of devices...

  8. Being A Vampire Ain't What It Used To Be. by zenlessyank · · Score: 1

    There is a suck joke in here some where.

  9. Should have switched to LibreOffice. by Gravis+Zero · · Score: 5, Funny

    LibreOffice would have enabled him to embezzle all $105 million. ;)

    --
    Anons need not reply. Questions end with a question mark.
    1. Re: Should have switched to LibreOffice. by Ahnahmoley · · Score: 1

      Localization.

    2. Re: Should have switched to LibreOffice. by Anonymous Coward · · Score: 0

      Pot meet kettle -> Localisation.

    3. Re: Should have switched to LibreOffice. by Anonymous Coward · · Score: 0

      Romanian built-in help is still missing.

    4. Re: Should have switched to LibreOffice. by Anonymous Coward · · Score: 1

      I wonder if it could have been added for less than, say, $105 million...

  10. in other news by ozduo · · Score: 1

    Chinese official goaled for NOT pirating microsoft software.

    --
    I got to the chocolate box before you, that's why the hard ones have teeth marks.
  11. Switch to Ubuntu by Anonymous Coward · · Score: 0

    and hire competent people to manage the systems, instead of corrupt politicians. You'll get rid of Microsoft, and save money. Don't say you can't write e-mails and write documents and exchange files on Linux-based systems; for every one of your scary stories about Linux, there is an equal scary story about Windows.

    1. Re:Switch to Ubuntu by lucm · · Score: 1

      So far there is no clear success story of a public organization using Ubuntu. There's Munich but it's not a fairy tale, lots of problems. Biggest successful Linux deployments are all Red Hats (such as the US Army).

      --
      lucm, indeed.
    2. Re: Switch to Ubuntu by Anonymous Coward · · Score: 0

      Autozone - Redhat
      Home Depot - IBM

    3. Re:Switch to Ubuntu by Anonymous Coward · · Score: 0

      So far there is no clear success story of a public organization using Ubuntu. There's Munich but it's not a fairy tale, lots of problems. Biggest successful Linux deployments are all Red Hats (such as the US Army).

      Except for the French National Police force moving to Ubuntu
      http://www.zdnet.com/article/french-police-move-from-windows-to-ubuntu-linux/

  12. Micrisoft encourages this sort of thing by Anonymous Coward · · Score: 2, Interesting

    With the two large contracts I negotiated, they kept trying to sweeten the deal. If it wasn't for kickbacks, Microsoft would probably lose half of their large deals.

    1. Re: Micrisoft encourages this sort of thing by Anonymous Coward · · Score: 2, Interesting

      My old boss was busted for accepting $50k to switch our state department to SharePoint. We wasted a ton of money and couldn't even get it to version files correctly.

    2. Re: Micrisoft encourages this sort of thing by Anonymous Coward · · Score: 0

      West Virgina?

    3. Re: Micrisoft encourages this sort of thing by Anonymous Coward · · Score: 1

      No, that one was several trips to Vegas with hookers. I don't think any cash was paid.

    4. Re: Micrisoft encourages this sort of thing by Anonymous Coward · · Score: 1

      This. Ever wonder why Microsoft has such a high penetration into state and local governments?

    5. Re: Micrisoft encourages this sort of thing by Anonymous Coward · · Score: 1

      No, that one was several trips to Vegas with hookers. I don't think any cash was paid.

      I got three nights in Vegas since the department of education I worked for was considering SharePoint. It almost killed me, but it was great fun.

      Over $500,000 later in licenses, servers, and contractor time, we still couldn't get it to work.

    6. Re: Micrisoft encourages this sort of thing by Anonymous Coward · · Score: 0

      I'm surprised you're admitting how bad of a negotiator you are.

    7. Re: Micrisoft encourages this sort of thing by lucm · · Score: 2

      I got three nights in Vegas since the department of education I worked for was considering SharePoint. It almost killed me, but it was great fun.

      Pace yourself, and always have ice in your drinks (helps with dehydration), and you'll last a whole week before almost dying in Vegas.

      --
      lucm, indeed.
  13. Re:Governments must stop paying private industry.. by Anonymous Coward · · Score: 0

    Is you're going to be a pretentious git, you should at least learn how to spell properly.

  14. Re:Governments must stop paying private industry.. by Anonymous Coward · · Score: 1

    There is nothing more intellectually dishonest than a counterargument along the lines of, "If you can't do something perfectly, you don't do it at all."

    Governments have the resources to adapt and adopt open source software rather than paying MS billions of dollars across the globe.

    As for the commanding heights of the economy, paper production might or might not be cost-effective to nationalise. As for printers, given what HP has done to the printer ink market, a non-profit company that produces high-quality long-lasting printers with cheap ink seems to be just what we need - although private industry is just about reversing this stupid trend. Government-owned corporations - either of the European social democratic model or the Chinese model (where the company may have private shareholders but is so heavily regulated by the government in the interests of the country that it essentially belongs to the state) - are most effective.

  15. Not just in the ex eastern block by Teun · · Score: 4, Funny

    First I wanted to post this as AC but then decided one day I need to come clean anyway.

    I installed Kubuntu including Libreoffice on the missus computer and never told her I took the 100% discount...

    --
    "The likes of Facebook and WhatsApp are free to those whose privacy is of zero value."
    1. Re:Not just in the ex eastern block by Anonymous Coward · · Score: 3, Funny

      I once installed Ubuntu on my GF's laptop.

      She booted it and gave me a puzzled look, "You-bunt-oo?"

      I shrugged, "That's Swahili for Windows".

      She beamed with joy, "Oh! I heard about this. It's, like, an expensive version where some money also goes to Africa!? You're such a nice guy."

      She still proudly uses the "Windows of the Developing World", and I keep reaping the benefits of her "upgrade" for myself -- I never had the heart to tell her it cost me nothing and her misunderstanding was over a bad joke.

      Captcha: Consent.

    2. Re:Not just in the ex eastern block by Anonymous Coward · · Score: 0

      "Let's do the math here, ten percent of nothing is nothing, carry the nothing..."

    3. Re: Not just in the ex eastern block by Anonymous Coward · · Score: 0

      Andddddd it's gone.

      Those investments didn't quite work out the way we wanted.....-and it's gone.

    4. Re:Not just in the ex eastern block by The-Ixian · · Score: 1

      Lies are the foundation of any lasting relationship..

      --
      My eyes reflect the stars and a smile lights up my face.
    5. Re: Not just in the ex eastern block by Teun · · Score: 1

      But the GF is still there :)

      --
      "The likes of Facebook and WhatsApp are free to those whose privacy is of zero value."
  16. A way to get rid of the nonesense by Anonymous Coward · · Score: 0

    Simply make it an offense punishable by life imprionment as well as forfeiture of all assets of you and anyone with in two hops of you for possesion of any microsoft IP, problem solve..

    your welcome

  17. Governments shouldn't use proprietary software by Stormwatch · · Score: 5, Insightful

    It should be illegal for governments to use proprietary software in the first place. Do as you wish as an individual, or a private enterprise, but public data cannot be subjected to vendor lock-in. And as governments are supposed to serve the public good (wishful thinking much?), they should promote the development of Free software.

    1. Re:Governments shouldn't use proprietary software by lucm · · Score: 1

      public data cannot be subjected to vendor lock-in

      A big problem is that big app vendors (SAP, IBM, etc) require either Oracle or SQL Server for the database layer. Many large organizations go with Oracle because it runs on UNIX. There's just no way to walk away from that lock-in.

      Of course there's always going to be some dude coming up and saying, we could rewrite SAP Financials using PHP and drupal modules (or RoR or whatever), but that's even scarier than being in bed with Oracle.

      --
      lucm, indeed.
    2. Re:Governments shouldn't use proprietary software by Anonymous Coward · · Score: 1

      Totally agree. Here in my state it was big news about 10 years ago that the state government had done a 100 million dollar deal with Microsoft to put Microsoft software in to all the public schools. I thought Microsoft should have paid the state 100 million dollars to be allowed to push their shit onto our children.
      Anyway, I had been wondering who the morons were who agreed to that deal, and true story, I was talking to my brother-in-law's sister after just meeting her and she told me all about how she had been in charge of the exact deal. I kept my mouth shut, but it was very eye opening to see how these things come about. She was so proud of the deal and to her it held a huge amount of status. "I headed up a 100 million dollar deal" sounds a lot more impressive to business types than "I organized to use free software".
      My father who was a software developer used to run in to a similar problem. He used to get tenders for big software projects, develop a solution and have the manual printed out in time to submit his tender. Anyway, his problem was that he would only charge tens of thousands of dollars while invariably the tender would be won by big companies charging in the millions of dollars. It wasn't until talking with my brother-in-law's sister that it all started to make sense. If you're spending other people's money then all you care about is the status of the deal. If my dad had of added a couple of zero's to his quotes he would have been in with a chance.

    3. Re:Governments shouldn't use proprietary software by Stormwatch · · Score: 1

      Damn. I wouldn't resist asking how much she got under the table. And if she got offended and claimed there's no bribe, I'd laugh, roll my eyes, and say sarcastically: "Suuuuuure, I totally believe you've made such a retarded deal with notorious crooks without taking some dead presidents for yourself. Come on now, how much?"

    4. Re:Governments shouldn't use proprietary software by Ryanrule · · Score: 1

      How about hardware? Or cubicles? Or cleaning equipment? Or weapons? Or buildings? Or..?

    5. Re:Governments shouldn't use proprietary software by Anonymous Coward · · Score: 0

      You know Microsoft has the specs public for how to read office formats, even the binary formats.

      The format is openly out there, it's just you would need a few million man hours of work to replicate it not to mention all the bug fixing that went into that over the years.

    6. Re:Governments shouldn't use proprietary software by Anonymous Coward · · Score: 0

      Software and hardware are different issues. Software is analogous to a food recipe. Imagine the government who licenses a famous chef's recipe book but in the license includes a promise to keep the recipes a secret and that if they need a recipe changed, the famous chef has full discretion to help the government or decline - this is assuming the chef is still around and is technically able to do so. Well most people feel that this kind of helplessness and subjugation an acceptable way of doing their business.

  18. When will Microsoft drop MOOXML? by Anonymous Coward · · Score: 0

    Bribes and all, yeah, lovely, but when is Microsoft going to drop support for its proprietary, closed, inferior Microsoft XML .docx and the like?

    1. Re:When will Microsoft drop MOOXML? by lucm · · Score: 1

      One of my clients still require support for the old XLS format. That's a lot worse.

      --
      lucm, indeed.
    2. Re:When will Microsoft drop MOOXML? by Anonymous Coward · · Score: 0

      "when is Microsoft going to drop support for its proprietary, closed, inferior Microsoft XML " Why would any company drop support for their own software? Especially the company cash cow product line. And describing something as inferior requires some supporting non-anecdotal evidence. Just because you cannot figure out how to use something doesn't make the software inferior.

  19. Re:Governments must stop paying private industry.. by lucm · · Score: 2, Insightful

    Governments have the resources to adapt and adopt open source software rather than paying MS billions of dollars across the globe.

    Are you kidding?

    Government IT always follows the same: each department/agency/division has their own IT turf that they protect against other department/agency/division, until some starry-eyed moron convinces the big cheese that having a central IT group would lower cost and could even become a profit center. At which point the central IT group becomes a nest of corruption showered with gifts from vendors, and every department/agency/division is charged ridiculous amounts of money for inferior or irrelevant products and services. So each department/agency/division starts special projects and bundles IT services in those, slowly recreating individual turfs. Rinse and repeat.

    --
    lucm, indeed.
  20. Re:Corporate corruption meets government corruptio by lucm · · Score: 4, Insightful

    Just for fun call the US GAO and ask them to give you a ball park figure as to how much public money is wasted in the federal government. The answer is: they have no fucking idea how to even start figuring out an answer. The only true answer they can give is that there's 1/2 billion wasted each year in having a GAO.

    --
    lucm, indeed.
  21. Re:Governments must stop paying private industry.. by Anonymous Coward · · Score: 0

    IT always follows the same: each department/agency/division has their own IT turf that they protect against other department/agency/division, until some starry-eyed moron convinces the big cheese that having a central IT group would lower cost and could even become a profit center. At which point the central IT group becomes a nest of corruption showered with gifts from vendors, and every department/agency/division is charged ridiculous amounts of money for inferior or irrelevant products and services. So each department/agency/division starts special projects and bundles IT services in those, slowly recreating individual turfs. Rinse and repeat.

    That's my experience in the private sector, but what happens in the public sector?

  22. Here, here! by ThatsNotPudding · · Score: 1

    It should be illegal for governments to use proprietary software in the first place.

    The National Weather Service still uses Flash to loop radar sweeps! What the Serious Fuck?