Microsoft bribery probe enters Russia, Pakistan

Microsoft bribery probe enters Russia, Pakistan

Summary: Microsoft has confirmed that the company is working with U.S. authorities to root out potential illegal activities in Pakistan and Russia.

SHARE:
TOPICS: Microsoft
12
microsoft bribery claims allegation russia
Credit: Microsoft

Microsoft has confirmed that the company is working with U.S. authorities to investigate allegations of bribery and corruption by employees and partners in Russia and Pakistan.

The confirmation comes after The Wall Street Journal reported that an ongoing probe was focusing on potential illegal activity in China, Italy and Bulgaria -- before expanding to include Pakistan and Russia. Microsoft employees and business partners allegedly engaged in illegal activity including the bribery of foreign officials for contracts.

According to the Journal, a tipster told Microsoft that software resellers have bankrolled executives of a state-owned firm to win contracts in Russia. In Pakistan, a tipster has claimed that Microsoft employees authorized a luxury trip for a government official and his wife to win a tender. Both actions were alleged to have taken place in the last eight months.

In a blog post, John Frank, Vice President and Deputy General Counsel at Microsoft acknowledged the report, confirming that the investigation is taking place, and Microsoft is cooperating fully with authorities.

"As previously stated, we take every allegation seriously, and we cooperate fully in any government inquiries," Frank writes. "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."

Frank also explained that Microsoft "invests heavily" in training, monitoring and audits, and hires over 50 people who investigate potential breaches of company policy. In addition, 120 people within the firm hold primary roles in monitoring and enforcing compliance. The VP says:

"We are proud of the role Microsoft plays in bringing technology to businesses, governments, non-profits and consumers around the world and the positive economic impact the company has in local communities, and we remain committed to the highest legal and ethical standards in every country where we do business."

Topic: Microsoft

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

12 comments
Log in or register to join the discussion
  • Microsoft = the real Evil = bribing everywhere!!!!!!!!!! just read:

    Microsoft = the real Evil = bribing everywhere!!!!!!!!!! just read:


    "Slovakia: Paying More Due to Corruption in the Area of State Tenders"
    "Microsoft bribery probe enters Russia, Pakistan."
    "Microsoft Being Investigated for Bribery Overseas"

    just search by google

    its time to DONT USE Microsoft with NSA backdoors in Windows!!
    anywherehome
  • We do things different here in the USA

    We don't call it bribing when we send senators to resorts, contribute to their campaigns, or send them off on fact finding trips.
    boomchuck1
  • corruption

    Well it seems like its fine to call it corruption out of country, but in country, its called> give money to a campaign, charge an exhorbant amount of money for legal fees, give defense contracts in exchange for votes, provide ailing Michigan car manufacturers with bail out money, allow people in the senate to receive stipends and not even attend meetings, etc etc etc. but as soon as its in another country, its called corruption. Americans have become so protective of themselves and don't care so much about anyone but themselves.
    PINASCOPY
  • who'd have thunk it?

    This is a shock. MS is corrupted? Noway. Come on, this what makes MS buoyant so many years. It's always been that way. They don't get caught all the time. But you see the results of their "under-table activity" here and there. In Russia, they managed to promote a campaign that proved their product TCO is much lower than the that of free software. They provided both the data and the sponsorship for the study. In Britain you can get a penalty for an ad spreading a false information.
    MS bribery not only happens in Russia, China and other countries, it's also pretty widespread in the US, it's been renamed to "MS incentives" though.
    eulampius
    • Re: who'd have thunk it?

      This is how Microsoft sells to the enterprise: by bribing the IT staff and the CIOs. Send them to conferences, "free" training, providing "goodies" such as free software for their private use etc.

      It is no wonder so many of these people are die hard Microsoft fans that refuse to see stuff that is at plain sight. We have plenty of these here.
      danbi
      • danbi

        Seems like the diehard linux and mac fanboys don't have this problem. (dripping with sarcasm) the companies all do it, just depends on how much they can pay overpriced lawyers and really bad judges and their counterpart politicians to stay away. wish the whole government could be fired and actually put people in place who care about the people, not about themselves or their a*****
        PINASCOPY
  • Microsofts business model is based on

    Bribery, extortion and running a mafia style patent protection racket.
    Jan L.
  • Microsoft now being investigated for alleged bribes in Russia Pakistan

    Alahad Group The Recruiting Specialists, Industry Leaders in Pakistan.
    Muhammad Sharif
  • Don't you find it curious...

    ... that the usual MS banner-wavers haven't shown up here in force defending the mother ship? Perhaps MS has suggested to LD and WF and Owl&L(n)&net and the others to sort-of stay away: the less posts in this topic, the better.

    We don't want attention drawing to this sort of activity, now, do we?
    Robynsveil
  • RE: Wondering

    If this is not at least part of the reason Ballmer is "retiring"
    edkollin
    • Unlikely. This is just too much "business as usual"...

      What I suspect is getting him the boot is the Surface fiasco (over a billion in combined losses from advertising AND manufacturing, and the loss of licenses to vendors).

      On top of that is the Xbox policy fiasco - trying to squeeze even more cash out of gamers, and failing.

      Along with that is a nearly flat stock value for the entire time he has been in charge.

      Which would also explain the 7% rise after the announcement.
      jessepollard
  • Wow, this thread is amusing...

    I have been a technology and IT consultant for quite awhile, and I think that both these companies have made their mistakes. But, they have also both contributed greatly to the world as well. While good actions, do not atone for bad, it is worthwhile to note that I doubt anyone commenting here is perfect either; I certainly am not.

    I see that both these companies have been trying hard to make large and beneficial changes in the world, and sure, get rich while doing it. Isn't that the entire point for going into business in the first place?

    I also see that both these corporations have let their egos and virtual corporate personas perpetuate considerable arrogant and selfish acts. As long as society as a whole learns and moves forward from all this activity, then how are these companies really any different than the average person who has stepped on a few toes while advancing their own lives. As long as atonement is made and progression continues, everyone hopefully learns from the mistakes. Then, with that I say, "Welcome to reality. The frailties and self-centred arrogant stupidity of humanity."

    Meanwhile, I will sit back and enjoy the show. The bickering; the bickering is always fun too!

    This entire thread is a fascinating study in human psychology, peer grouping, self-enhancement bias through social judgment (http://guilfordjournals.com/doi/abs/10.1521/soco.1986.4.4.353), and relational aggression perceptions (https://en.wikipedia.org/wiki/Relational_aggression)

    Here we have two groups of people, aligned, or not, towards some corporation or other because they desperately want to validate their place in society. It is assumed that most of these people know little or nothing about technology, the companies in question, or corporate legal matters. Most of these people are "search engine experts" who after reading a few articles and some quick searches online feel the inner need to express their profound understanding and authority (sic) on legal and corporate practices. (I am probably the same .. lol, but it is most interesting nonetheless)

    Carry on people... *breaks out the popcorn*

    :P
    Kieron Seymour-Howell