Hewlett Packard announced last week in a Form 10-Q filing with the Securities and Exchange Commission that Poland has joined U.S. enforcement agencies in investigating potential violations of the Foreign Corrupt Practices Act.  

The SEC and Department of Justice, along with the Polish Central Anti-Corruption Bureau, are conducting investigations into potential FCPA violations by an employee of Hewlett-Packard Polska, an indirect subsidiary of H-P, in connection with certain public sector transactions in Poland.

“In addition, the agencies are conducting investigations into certain other public-sector transactions in Russia, Poland, the Commonwealth of Independent States, and Mexico, among other countries,” the company stated.

H-P said it is cooperating with these investigating agencies.

Germany Probe

The German Public Prosecutor's Office (German PPO) is also conducting an investigation into allegations that current and former employees of H-P engaged in bribery, embezzlement and tax evasion relating to a transaction between Hewlett-Packard ISE in Germany, a former subsidiary of H-P, and the General Prosecutor's Office of the Russian Federation.

The Justice Department and SEC are also investigating the Russian deal for potential FCPA violations.

“The approximately €35 million ($46 million) transaction, which was referred to as the Russia GPO deal, spanned the years 2001 to 2006 and was for the delivery and installation of an IT network,” HP stated.

The German PPO has issued an indictment of four individuals, including one current and two former H-P employees, on charges including bribery, breach of trust and tax evasion. The German PPO has also asked that H-P be made an associated party to the case.

If the German PPO's request is granted, H-P stated that it “would participate in any portion of the court proceedings that could ultimately bear on the question of whether H-P should be subject to potential disgorgement of profits based on the conduct of the indicted current and former employees.”

“In many foreign countries, particularly in those with developing economies, it is common to engage in business practices that are prohibited by laws and regulations applicable to us,” HP stated.  “Although we implement policies and procedures designed to facilitate compliance with these laws, our employees, contractors and agents, as well as those companies to which we outsource certain of our business operations, may take actions in violation of our policies. Any such violation could have an adverse effect on our business and reputation.”