SNOOP SCANDAL COSTS HP CHAIRWOMAN HER JOB

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Date: Wednesday September 13, 2006 12:09:00 pm
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    Snooping Scandal Costs HP Chairwoman Her Job
    HP chairman quits over ‘spy row’
    The
    chairman of Hewlett-Packard (HP) is to step down from the role amid
    criticism for demanding a probe into leaks about the firm made to the
    media.Patricia Dunn will resign as chairman of the board in January,
    but will remain a non-executive director.She apologised for the
    unorthodox investigation of other boardmembers, which included hiring
    undercover consultants who posed as journalists.

    Chief executive Mark Hurd will become chairman in the reshuffle.
    The
    US House of Representatives Energy and Commerce Committee has ordered
    HP to hand over records related to its internal inquiry into boardroom
    leaks.California and US authorities have been investigating whether any
    laws were broken during the investigation.”I am taking action to ensure
    that inappropriate investigative techniques will not be employed
    again,” Mr Hurd said.”They have no place in HP.”

    ‘Inappropriate’
    In
    a bid to discover which employee had leaked “confidential” reports to
    the press, investigators obtained the phone records and other data of
    journalists and HP employees without their permission.The practice,
    known as “pretexting”, is a common one among private investigators –
    but tests the limits of California state laws, as prosecutors believe
    it violates laws covering identity theft and unauthorised access to
    computer data.In a statement, Ms Dunn apologised for the techniques
    used.”Unfortunately, the investigation, which was conducted with third
    parties, included certain inappropriate techniques,” she said.”These
    went beyond what we understood them to be, and I apologize that they
    were employed.”Last week, Ms Dunn said she had no idea of the tactics
    to which private investigators would resort, adding she was “appalled”
    that journalists had been targeted.

    Barred
    Board
    member George Keyworth was identified as the source of the leak.Mr
    Keyworth stated that he had leaked information but refused to step
    down, despite being asked to.As a penalty, HP barred him from seeking
    re-election to the board.

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