International Business Machines Corp. and PricewaterhouseCoopers LLP

Washington, DC: (Aug-16-07) The US Justice Department brought charges against International Business Machines Corp. (IBM) and PricewaterhouseCoopers LLP, alleging that they made improper payments on government technology contracts. The suit was filed as part of a larger, ongoing federal investigation of three technology companies Hewlett-Packard Co., Sun Microsystems Inc., and Accenture Ltd., which also have been accused of providing kickbacks to federal consultants to get government tech contracts. In those complaints, filed in April 2007, the government alleged the three companies formed alliances and paid kickbacks such as fees, commissions and discounted products and services to companies retained by the government to provide independent advice about appropriate hardware and software purchases.

The suit claimed that IBM and PricewaterhouseCoopers solicited, paid money or provided other benefits to several companies, in violation of federal regulations. Federal officials stated that the payment of kickbacks or illegal inducements undermines the government procurement process. Though both the companies denied the allegations, and did not admit any guilt or liability, they agreed to pay a combined settlement of nearly $5.3 million to resolve the allegations. [NEWSDAY: GOVT CONTRACTS]

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Published on Aug-18-07