US Justice Department launches anti-bribery investigation on IBM multinational business

The U.S. Department of Justice has launched an overseas anti-bribery investigation of IBM's operations in Poland, Argentina, Bangladesh and Ukraine, the company said this week, the news of the Beijing time, May 3. In Tuesday, IBM said in a filing to regulators that the company had been informed in April that prosecutors were investigating some of IBM's records in 4 countries and had asked IBM for information under the US law on overseas anti-corruption. In addition, Polish investigators are also investigating allegations related to IBM's Polish operations. U.S. federal judges have postponed a 10 million dollar settlement between IBM and the Securities and Exchange Commission (SEC). IBM has been accused of bribery in the form of cash, gifts and travel to government officials in South Korea and China, violating the US law on overseas anti-corruption. The U.S. Department of Justice and the SEC are working together on the Law on Overseas anti-corruption, a law that prohibits American companies from bribing other state officials to win business. The SEC and IBM reached a settlement in March 2011. Under the terms of the settlement, IBM did not explicitly acknowledge or deny bribery allegations. However, Richard Leon, a judge in Washington, D.C., subsequently suspended approval of the settlement, as Leon wanted to include additional provisions in the settlement, requiring IBM to report certain information that IBM had Richard Leon to comply with. In February this year, Leon cancelled some of the toughest demands, but the settlement was not yet finally reached. It is not clear whether IBM's latest disclosures have any impact on the SEC's settlement plan. An SEC spokeswoman declined to comment on the news, and the US Justice Department and IBM have yet to respond. IBM said in Tuesday that it had informed the SEC in early 2012 that the Polish central anti-corruption defeat was investigating an allegation that was linked to sales of a former IBM Polish employee to a Polish government department. IBM then worked with the SEC and Polish-related departments on the issue. IBM said in April this year that the Justice Department was investigating allegations that IBM's operations in Poland were under investigation, and was also investigating allegations against IBM's operations in Argentina, Bangladesh and Ukraine. IBM says it is working with the U.S. Department of Justice. (D-Gold)