Russian and German authorities are investigating whether Hewlett-Packard executives used bribery to seal a deal for computer equipment in Russia at the beginning of the last decade – when Carly Fiorina, Republican candidate for the US Senate, was CEO of the company.
German prosecutors are looking into the possibility that H-P executives paid about €8 million ($10.9 million) in bribes to win a €35 million contract under which the U.S. company sold computer gear, through a German subsidiary, to the office of the prosecutor general of the Russian Federation. The office handles criminal prosecutions in Russia, including many corruption cases.
Russian investigators raided H-P’s Moscow offices Wednesday in connection with the probe, the people familiar with the matter said. The search was requested by German authorities, according to a statement posted on the Russian prosecutor’s Web site.
In December, German authorities arrested three suspects, including one current H-P executive and two former company officials, in connection with the case, according to court records. None of the three has been formally charged and all have since been released on bail.
All of this raises the obvious question: what did Carly Fiorina know about the Russian contract, and when did she know it? As CEO when the contract was won in 2000, Fiorina would plausibly have had knowledge of what was done under her tenure to win that contract. After all, the CEO of the company is ultimately responsible for what happens.
It’s not the first time Fiorina and H-P have been criticized over possible misdeeds in foreign countries. There have been persistent questions about H-P’s business associations with Iran during Fiorina’s tenure.
Bribery and subverting sanctions are serious allegations, and Fiorina needs to answer them openly and honestly.
Maybe she can swap tips with Duke Cunningham on how it’s done.
A later article from the WSJ shares that the Securities Exchange Commision is now investigating possible violations of the Foreign Corrupt Practices Act, and it’s entirely imaginable that her old enemies at HP are ready, willing, and able to throw Carly under the bus:
And apparently they’re taking it quite seriously in Palo Alto, HP has already “lawyered up,” going back to their trusted firm that insulated the board of directors from any wrong-doing in arranging Carly’s severance package.
Interestingly, HP’s lead attorney has been involved in partisan imbroglios before, as Debra Wong Yang was previously a US Attorney in California who left that position after being involved in investigating corruption allegations against Rep. Jerry Lewis….
Meanwhile, there’s some debate as to whether 9 or 10 suspects are named by prosecutors in Saxony, although three were arrested in Germany and Switzerland last December, released uncharged, and are undoubtedly cooperating…