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HP PAYS $16M IN TEXAS SCHOOL DISTRICT BRIBERY CHARGES
Hewlett
Packard has agreed to fork over $16.25 million to settle charges that
the computer maker “lavished” gifts on two Texas school districts in
order to win government contracts to provide computer equipment. Acting
on tips from whistleblowers within the Dallas and Houston school
districts, the Department of Justice and Federal Communications
Commission investigated the allegations.”Meals and
entertainment—including trips on a yacht and tickets to the 2004 Super
Bowl—were provided by the contractors to get inside information and win
contracts that were supposed to be awarded through a competitive bidding
process,” the Federal Communications Commission disclosed late on
Wednesday.The FCC’s Schools and Libraries or “E-Rate” fund is the
program that was allegedly compromised. E-Rate provides money to
libraries and schools for computer and networking gear. Contractors like
HP are supposed to bid for school district cash under an open
process.The suits were filed under the provisions of the False Claims
Act, which allows the whistleblowers to sue on behalf of the United
States and receive some of the recovery money. But, as is often the case
in these settlements, while the government charged that HP was
“conspiring to rig the competitive bidding of E-Rate contracts,” the
company is admitting no crime.“This Agreement is neither an
admission of liability by HP, which denies the claims described above,
nor a concession by the United States that its claims are not
well-founded,” the settlement explains.Bottom line: HP will pay
$7,402,441 for the Dallas contract and $8,847,559 for its contracting
bids in Houston.We did nothing wrong, and we’ll never do it againHP has
also agreed to a compliance program which involves training its
employees in how to comply with E-Rate contracting rules (presumably
someone will tell them not to hand out Super Bowl and yacht trip tickets
to school officials).The company’s employees will have to certify that
they “are not aware of and have no reason to suspect that anyone has
provided or has promised to provide a gift, payment or entertainment, or
anything else of value, on HP’s behalf in connection with any bid or
agreement that might violate the E-Rate Program Rules or other
applicable law, or any HP policy.”Further actions are being taken
against former HP business partners Micro Systems Engineering (MSE) and
Analytical Computer Services (ACS), and a number of individuals.
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