US ‘probes’ Microsoft business partners in Russia, Pakistan
They allegedly offered kickbacks to executives for lucrative contracts.
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
WASHINGTON:
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.
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.