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  • Microsoft found guilty of bribery

    Home Forums Outside the box Rants Microsoft found guilty of bribery

    This topic contains 10 replies, has 5 voices, and was last updated by  rexr 3 weeks, 6 days ago.

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    • #1882489 Reply

      NoLoki
      AskWoody Lounger

      Microsoft has agreed to pay two fines worth over $25 million to settle charges with the Department of Justice and the Securities Exchange Commission involving a foreign bribery and kickback scheme orchestrated by its Hungarian subsidiary. The OS maker will pay a criminal penalty of $8,751,795 to the DOJ, and a second penalty of $16,565,151 to the SEC.

      Microsoft was accused of breaking the Foreign Corrupt Practices Act (FCPA).

      The SEC accord also resolved charges over improper travel and gifts to officials in Saudi Arabia and Thailand through “slush funds” maintained by third parties, and an unexplained discount on a transaction involving Microsoft’s Turkish unit.

      https://www.zdnet.com/article/microsoft-to-pay-25m-to-doj-and-sec-in-hungary-bribery-case/

      Here is what happened to a Canadian company involved in bribing a foreign government…

      SNC-Lavalin faces charges of fraud and corruption in connection with nearly $48 million in
      payments made to Libyan government officials between 2001 and 2011. If convicted, the company
      could be blocked from competing for federal government contracts for a decade.

      It would have been fitting if Microsoft had have suffered the same punishment as SNC-Lavalin. Not being allowed to bid on US government contracts for 10 years would have hurt. The fine that was levied against Microsoft is a fraction of their monthly profits, so it leaves them celebrating and the rest of us holding our nose.

    • #1883926 Reply

      Alex5723
      AskWoody Plus

      The fine that was levied against Microsoft is a fraction of their monthly profits, so it leaves them celebrating and the rest of us holding our nose.

      The Trump administration is afraid to hurt American companies.
      The latest fines on Facebook $5B, Google ($13M for harvesting children data) and EQUIFAX $700M are a joke.
      While the DOJ is opening an investigation into Amazon, Google, Facebook and Apple it leaves Microsoft alone.

      • This reply was modified 4 weeks ago by  Alex5723.
    • #1883967 Reply

      jabeattyauditor
      AskWoody Lounger

      Here is what happened to a Canadian company involved in bribing a foreign government… SNC-Lavalin faces charges of fraud and corruption in connection with nearly $48 million in payments made to Libyan government officials between 2001 and 2011. If convicted, the company could be blocked from competing for federal government contracts for a decade. It would have been fitting if Microsoft had have suffered the same punishment as SNC-Lavalin. Not being allowed to bid on US government contracts for 10 years would have hurt. The fine that was levied against Microsoft is a fraction of their monthly profits, so it leaves them celebrating and the rest of us holding our nose.

      Let’s examine what’s quoted above…

      SNC-Lavalin has been accused of criminal activity; some of its employees have been found guilty of other (possibly-related) charges. SNC-Lavalin has pled not guilty to the charges filed against it.

      The cases against SNC-Lavalin have not even been heard yet.

      You’re comparing the fines agreed to by Microsoft to settle a case involving the actions of rogue Hungarian subsidiary employees (you DID read the article, didn’t you?) with the POSSIBLE penalties a Canadian firm might face under Canadian law IF CONVICTED OF ALL CHARGES?

      Wow.

      2 users thanked author for this post.
    • #1884075 Reply

      NoLoki
      AskWoody Lounger

      It is clearly stated that SNC is accused of bribery and faces charges, and if convicted will face a decade where they will not be able to bid on government contracts. The error I made is in the last paragraph, I stand corrected, that should read – It would have been fitting if Microsoft had have suffered the same punishment that SNC-Lavalin is facing.

      Second point, a subsidiary is a company controlled by a holding company. Microsoft, in this case, is the holding company. Note: ‘controlled’. It has oversight over all its business activities.

    • #1884297 Reply

      rexr
      AskWoody Plus

      Not much comparison there imo. The OECD warned Canada’s government to stop interfering with the legal investigation. SNC-Lavalin bribed government officials in Libya, a country under UN sanctions that had conducted bombings around the world. One of those bombings killed my fellow troops in West Berlin, before reunification. Another murdered hundreds of civilians in a civil jetliner crash into Lockerbie. SNC paid millions to enrich those kind of criminals.

      On the other hand is Hungary, where four local employees worked with crooked MS employees to defraud Microsoft itself. Hungarians haven’t exported bombers anywhere that i’ve read of, sans against Nazi troops in WWII.

      Microsoft is far from one of my favorite companies, but that was comparing apples to lemons. Read the Toronto Star for updates.

       

       

      Intel&AMD builds, Win10H v1903 18362.267
      2 parrots and a cat
      • This reply was modified 4 weeks ago by  rexr.
      • This reply was modified 4 weeks ago by  rexr.
      2 users thanked author for this post.
    • #1884742 Reply

      Geo
      AskWoody Plus

      The U.S. is the only country in the world that  does not allow   “baksheesh”  to be paid in business dealings.

    • #1885121 Reply

      NoLoki
      AskWoody Lounger

      @rexr. I am sorry to hear that you have lost friends, especially while they were serving their country. My heart goes out to you and their families.

      Microsoft employees and the employees involved from the subsidiary who committed this act of bribery did not commit a violent act (granted). However, bribery buys favor. A person in a position of trust who takes a bribe may be able to influence the judgment or conduct of others. Business may come the way of a company that did not have the best proposal on an open contract.

      The extent of the wrong-doing is not what I was comparing. Punishment is the comparison. A small fine is not proportionate to the gain.

      • #1885172 Reply

        jabeattyauditor
        AskWoody Lounger

        The extent of the wrong-doing is not what I was comparing. Punishment is the comparison. A small fine is not proportionate to the gain.

        The Court believes otherwise.

        The SEC fine covers the entire profits realized from this illegal activity ($16.5M+); the $8.7M penalty paid to the Treasury is roughly 50% more on top of that.

        If one of your employees committed fraud (without your knowledge) and you found out about it, then fired them, then assisted with their prosecution… would you expect that your entire income would be subject to forfeiture? Would you consider such a penalty to be fair and equitable?

    • #1885169 Reply

      Geo
      AskWoody Plus

      The U.S. is the only country in the world that  does not allow   “baksheesh”  to be paid in business dealings.

      Projects and activities – Strengthening enforcement of the OECD Anti-bribery Convention     The Convention has no enforcement mechanism.  Only a report.  They leave it up to each country.

    • #1888375 Reply

      rexr
      AskWoody Plus

      @noloki, thankyou for the thoughts to the victims and families who were killed. The troops knew what they could be in for overseas, though the families on the plane were just vacationing. I usually stay out of the “outside-the-box rants” labelled sections in forums, but “Libya” triggered an old irritation…

      For the bribery around the world (or baksheesh, i hadn’t heard that word in awhile :), it must be ingrained in business and government types, maybe most everybody, because it never ends. Even Oxfam that surprised cynical old me. We invent a hundred watchdogs to root out bribery/corruption, give them few or no criminal prosecution powers except civil fines with no admissions of guilt. Weak. And some no one can touch because they operate from countries that rule by being corrupt. The circle keeps spinning.

      Intel&AMD builds, Win10H v1903 18362.267
      2 parrots and a cat

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