The investigation of the US Justice Department has extended to Russia and Pakistan, as The Wall Street Journal cited people who have knowledge of the probe. PHOTO: REUTERS
Microsoft business partners in Russia and Pakistan are being investigated by the US for paying bribes for winning contracts, cnet.com – a tech media website – quoted a news report as saying.
US investigators in the Justice Department and Securities and Exchange Commission are said to be investigating Microsoft’s relationships with representatives and resellers who allegedly bribed foreign officials in return for lucrative contracts.
It was previously believed that the US was solely investigating Microsoft’s partners in Italy, China and Romania.
However, the investigation has extended to Russia and Pakistan, The Wall Street Journal reported on Wednesday, citing people who have knowledge of the probe.
News of the investigation was made public in March, when the journal cited sources as saying the US was investigating an alleged bribery scheme involving Microsoft and its business partners in a few countries around the world. At that time, Microsoft didn’t acknowledge the inquiry, but said it takes all allegations “seriously”.
Microsoft Vice President and Deputy General Counsel John Frank said: “Like other large companies with operations around the world, we sometimes receive allegations about potential misconduct by employees or business partners and we investigate them fully regardless of the source. We also invest heavily in proactive training, monitoring and audits to ensure our business operations around the world meet the highest legal and ethical standards.”
According to the journal’s sources, Microsoft’s resellers in Russia allegedly offered kickbacks to executives who bought its software.
Another source claims that Microsoft allowed a consulting firm to pay for a government official’s trip with his wife to strike a deal.
Frank gave the same statement to the WSJ on Wednesday and did not mention the investigation.
For its part, the US government has been quiet on the investigation and it has not accused Microsoft of any of the allegations.
“We have not been contacted by anyone [investigators] in this regard,” said Amir Rao, Microsoft’s Country Manager for Pakistan, in response to a query made by The Express Tribune.
Microsoft’s official blog has already released the company’s statement on that subject, he said.
Published in The Express Tribune, August 24th 2013.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS (5)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
1730379446-0/WhatsApp-Image-2024-10-31-at-17-56-13-(1)1730379446-0-270x192.webp "pia to expand network to europe uk")
1735025557-0/Untitled-(96)1735025557-0-270x192.webp "christopher nolan casts zendaya tom holland anne hathaway and more in adaptation of the odyssey")
Corruption wins !! Microsoft looses.....
These trips are under the section of business trips by the IT firms. The first priority is to make them visit the success stories in that particular country.
The ET has not published the complete story of Wall Street journal. Following is the excerpt from it: "One tipster emailed Microsoft in January alleging executives at Microsoft's Pakistan operations paid for a December 2009 trip for a Punjab Provincial government official and his wife to win a three-year contract to supply the government with its Microsoft Office software, according to documents reviewed by The Wall Street Journal. The trip, which was allegedly booked by a travel consulting firm on behalf of Microsoft, included business class airfare and a stay at a luxurious hotel, the tipster alleged in the documents. According to the tipster, Microsoft won the partnership, worth roughly $9 million, three months later. The Punjab Government didn't respond to a request for comment."
I bet that such a big deal cannot be struck without prior consent of CM. Will Shahbaz Sharif like to clarify the situation?
It seems corruption is so wide spread in the world that even Italy, China, Romania and Russia are in same line as Pakistan!!! .