H-P executives faces bribery probe in Russia

German and Russian authorities are investigating whether Hewlett-Packard Co. executives paid millions of dollars in bribes to win a contract in Russia, according to people familiar with the matter. “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 […]

German and Russian authorities are investigating whether Hewlett-Packard Co. executives paid millions of dollars in bribes to win a contract in Russia, according to people familiar with the matter. “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,” reports Wall Street Journal. HP confirmed through a spokeswoman that a company office in Russia was searched, saying the allegations were of "conduct that occurred almost seven years ago, largely by employees no longer with HP. We are cooperating fully with the German and Russian authorities." She also stated the company was conducting its own internal investigation. A spokesman for the German prosecutor's office in Dresden said the investigation included allegations of breach of trust, tax evasion, money laundering and the possibility money was taken from the company to create a slush fund.