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HP bribery case net widens while Russia discusses forgiving bribes

Published: 10 September, 2010, 21:17
Edited: 11 September, 2010, 02:37

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TAGS: Crime, Scandal, Russia, Law, Prime Time Russia


The US has joined the long-running investigation into an alleged bribery case involving computer giant HP and Russian government officials. Meanwhile, Russia is developing a new approach to corruption.

After long considerations, US authorities have decided to finally become involved – the alleged bribery scandal, they decided, could be much deeper and more widespread than they originally thought.

In the beginning, the HP scandal was just a German-lead investigation concerning one transaction, in particular, between a German-based subsidiary of Hewlett Packard and Russian officials in which a bribe allegedly had been paid.

Now, however, the US worries that an American company could have been in breach of its foreign corrupt practices act, which bans paying bribes to foreign officials.

The US Department of Justice has requested all information from Hewlett Packard concerning their transactions with governmental agencies in Russia and the CIS going back to 2000.

Hewlett Packard officials said that they are cooperating with the government on that issue.

“HP is, and has been fully cooperating with the investigating authorities who have focused their investigation primarily on a transaction between an HP subsidiary and the Chief Public Prosecutor’s Office of the Russian Federation and who have now expanded their investigations beyond that particular transaction,” Anette Nachbar, corporate communication director of HP EMEA, said.

Meanwhile, Russia’s State Duma suggests showing mercy to those who have been paid a bribe for the first time, if the sum is lower than three thousand roubles.

Duma officials behind the idea say this will help the most vulnerable bribe-takers – teachers and medics.

This, however, does not mean they will walk free. Fines and correctional work will still be enforced.

Otherwise, the initiative suggests lowering the amount of the payment defined as a large-scale bribe and increasing prison terms for up to 15 years.

Critics say this is unlikely to be efficient, since very few bribery cases end up in court.

In 2009, almost 1700 people were found guilty of bribery in Russia. Out of these, only 356 have been sent to prison and just 15 people received more than a five-year term.

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