17 March 2015
Canadian police arrested seven people involved in fixing a $24 million IT contract for the Quebec’s tax authority. Those arrested include employees of IBM, its local partner Informatique EBR Inc. and Quebec’s tax authority.
According to CBC news, 50 officers of Quebec anti-corruption squad raided the homes of several employees last Wednesday. Three IBM employees were arrested.
Revenue officers arrested were Hamid Iatmanene and Jamal El Khaiat. The two gave confidential information regarding the upcoming IT contract to the employees of IBM and its local partner Informatique EBR.
Of the two arrested from Informatique EBR, one was Mohamed El Khayat was a director of EBR and a brother of Jamal El Khaiat arrested in the Revenue office.
Public Security Ministry employee, Abdelaziz Younsi was also arrested. He along with El Khayat was charged with corruption in another contract awarded by the Public Security Ministry.
In 2011, IBM negotiated a settlement with SEC to pay $10 million to compound FCPA offences in China and South Korea. IBM agreed to the settlement without agreeing or denying allegations. It is understood Department of Justice would investigate possible FCPA violations in Poland, Argentina, Bangladesh, and Ukraine.
A court in Argentina imposed a fine of US$9.3 million IBM’s local subsidiary for allegedly seeking to win a contract for the country’s tax collection scheme. IBM did not have the best offer but yet it won the contract through bribery. IBM then engaged another small company to do the job and paid it a small sum and kept the difference.
Big companies exploit mostly companies and governments in poor countries. After getting bold with their doings in poor countries, they try their tactics even in developed countries like Canada.
Canada: IBM in bribery scandal
17 March 2015