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DOJ, SEC allege Microsoft bribed Chinese, other government officials

colinneagle (2544914) writes | about a year and a half ago

Microsoft 1

colinneagle (2544914) writes "Microsoft, which is often slow to comment with any substance when mud is flung its way, responded almost immediately after a Wall Street Journal article claimed Microsoft is the subject of probes being conducted under the Foreign Corrupt Practices Act by both the Justice Department and the Securities and Exchange Commission; allegations were made that kickbacks were given to foreign government officials in China, Italy and Romania for software contracts.

WSJ reported that the kickbacks were allegedly made by a "former Microsoft representative in China" and reported to U.S. investigators in 2012 by an "anonymous tipster" who was responsible for landing "potential new business." This "tipster" claimed that "an executive of Microsoft's China subsidiary instructed the tipster to offer kickbacks to Chinese officials in return for signing off on software contracts."

Microsoft's John Frank, Vice President and Deputy General Counsel, responded, "We take all allegations brought to our attention seriously, and we cooperate fully in any government inquiries. 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.""

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This is common practice - everyone does it. (1)

shugah (881805) | about a year and a half ago | (#43225069)

I've worked in China, Korea (in the 1990's), Malaysia and Saudi Arabia - and in my experience, nothing gets done unless someone is greasing the local officials. Smart companies do it through local agents to keep transactions at arms length, but in China for sure, everyone pays kickbacks.
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