US Fines HP $108 Million for Bribery in Mexico, Poland and Russia

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By Indo Asian News Service | Updated: 12 September 2014 19:51 IST

US authorities have ordered information technology giant Hewlett-Packard (HP) to pay a fine of $108 million after finding the company guilty of paying bribes through its subsidiaries in Russia, Poland and Mexico.

The Justice Department in a statement Thursday said that the HP subsidiary in Russia had admitted to a judge of the Northern District of California of having violated several provisions of the US Foreign Corrupt Practices Act by creating a hidden fund that was used to bribe Russian government officials.

In exchange, HP won a contract worth millions of dollars from the Russian government.

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The company lawyers pointed out that the conduct was limited to a small group of employees in HP Russia who no longer work for the company.

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The case, for which the Palo Alto, California-based company must pay $58.7 million, was part of a larger agreement between HP and the Justice Department in April involving similar practices in Poland and Mexico.

(Also See: HP Posts Surprise Revenue Gain on PC Sales Jump)

HP's total amount payable to the government for these crimes in the three countries amounts to $108 million.

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In the case of Mexico, the HP subsidiary admitted to having bribed officials of Pemex, Mexico's state-owned oil company, while HP Poland bribed national police authorities.

"IT companies, like all companies, should compete on a level field of play and not resort to secret books and false transactions to hide millions of dollars in bribes," federal prosecutor Marshall Miller said.

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"Today's verdict is an important step in our effort to condemn those who are corrupt in the international market," he added.

 

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Further reading: Bribery, HP, Laptops, PC, Russia
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