Investigations against HP over Bribery Case Widened
Investigations against HP over Bribery Case Widened

As per a person familiar with the matter, the U.S. Justice Department has widened the range of its investigation against Hewlett-Packard Co. for its illicit practice to grease palms of an official of Russia, to secure some contracts.

The case was raised against HP by Security Exchange Commission. The Company was accused of paying bribes in Russia through a German subsidiary to acquire contracts worth €35 million or about $44.5 million from the prosecutor general of the Russian Federation. The term of the contract was 2001 to 2006, which involved supplying and installing an information technology network.

As per the Thursday’s filings by SEC, the US authorities have sought more information about specific governmental and quasi-governmental transactions in Russia and in the Commonwealth of Independent States sub-region carried out from 2000 onwards.

HP is co-operating with the inquiry completely, as expressed by an HP spokeswoman. She said, “Investigators were focused primarily on the contract with the Russian prosecutor's office but that they have now expanded their investigations beyond that particular transaction".

No comments have been made by the Justice Department and the SEC, over the case.

The action against HP comes under Foreign Corrupt Practices Act, which prohibits bribes to foreign officials. The earlier inquiry into the matter involved the former employees of the Company only.

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