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AnonymousInactiveExport Controversy Rocks HP’s Israeli Unit
Hewlett-Packard’s
European unit has reportedly reversed a decision last week to fire 14
employees, including CEO Gil Rosenfeld, following an internal company
probe of the unit’s export practices.
TEL
AVIV, Israel – Hewlett-Packard’s European unit has reportedly reversed
a decision last week to fire 14 employees, including CEO Gil Rosenfeld,
following an internal company probe of the unit’s export practices.
The
firings reportedly occurred Friday (March 24) after an extensive
investigation by executives in HP’s European operation, according to
Israeli press reports. The probe focused on alleged “gray market” sales
outside Israel, which violates company policies. However, HP Europe
relented on Sunday after Rosenfeld denied the allegations and claimed
he was being set up.
The dismissals were based on suspicions that
the Israeli subsidiary sold products that were intended for the Israeli
market to other countries at cheaper prices. The export practice
violates a permit granted to the Israeli unit by HP that forbids it to
sell products outside Israel.
An HP spokeswoman on Monday dismissed statements attributed to the company in the Israeli press as “speculation.”
The
company added in a statement: “HP has determined that gray market
activities were taking place at HP Israel and is currently conducting
an extensive internal investigation. Gray market activities are not
unlawful but they violate HP’s own policies and its Standards of
Business Conduct. HP has made no decisions as of yet, but regardless of
the outcome, HP remains fully committed to the IT market in Israel.”
Rosenfeld denied the allegations and demanded HP Europe present him
with its evidence. Rosenfeld said documents presented to him were not
tied to gray market activities, and he was planning to petition the Tel
Aviv Labor Court to obtain a temporary injunction forbidding HP from
terminating his employment until the case is resolved.
Rosenfeld
claimed he discovered the irregularities and approached HP Europe to
launch an investigation. He further charged that HP Europe’s management
“has fallen victim to distortions by interested parties seeking to
mislead it,” adding, “had they accepted my offer to aid in the
investigation, it would have uncovered the truth. Someone in HP Israel
passed certain information to executives at HP Global. I am being set
up.”
Rosenfeld was likely referring to his predecessor, Ehud Graff.
Rosenfeld said he discovered irregularities at HP Israel when he took
over from Graff two years ago. Rosenfeld claimed he notified HP Europe
about questionable fees paid to Israeli sales agents but was ordered to
take no action against employees. None of the agents who were paid were
among the fired employees. -
AuthorMarch 30, 2006 at 11:53 AM
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