Boston, MA 04/15/2014 (wallstreetpr) – Hewlett-Packard Company (NYSE:HPQ) admitted that its officials in Russia, Mexico and Poland paid bribes to win or retain business contracts with government offices or big customers. On that note, the company agreed to pay $108 million to settle the foreign corrupt practices by its officials. The money will be paid to the U.S. Securities Exchange Commission and the U.S. Department of Defense.
However, the company denied rumors that it was planning to close its operations in Poland following the irregular conduct of its executives in the country. Moreover, the company’s press relations official, Claire Loxley, further stated that Hewlett-Packard Company (NYSE:HPQ) will not remove its HP Global Business Center from Poland as rumors have indicated.
After the company accepted the ills of its executives in Russia, Mexico and Poland, sections of media reported that the company will react to the embarrassing developments in Poland by closing its offices in the country.
Investigations by the U.S. regulators unearthed a syndicate of corruption in which officials of Hewlett-Packard Company (NYSE:HPQ) made payments to government officials and senior executives in some companies in order to influence the awarding of business contracts. In Poland, for instance, the company’s officials were found to have given out more than $600,000 in cash and gifts to win a contract from the countries police service.
In Russia, investigations revealed that the company paid about $2 million through agents to win a multi-million dollar contract from the office of the federal prosecutor of Russia. In Mexico, the company was found to have paid bribes worth more than $1 million to officials of a state-controlled petroleum company in a bid to win software contract from the company.
Hewlett-Packard Company (NYSE:HPQ), an information technology company at the center of a turnaround, admitted to the corrupt practices of its officials in the countries but said that the same will not happen again. The company said that besides relieving the corrupt officials off their employment, it was putting in place measures to stop future violation of the corrupt practices law.
Shares of the company have gained in recent times, jumping 1.4 percent in the last session, and trade near the 52-week high.