HP caught up in police cash-for-contracts scandal

Polish prosecutors allege HP exec paid $500,000 bribe in exchange for help winning deals to supply police HQ

An ex-HP employee has been accused of paying Polish police officials hundreds of thousands of dollars in exchange for helping HP win police IT deals.

Earlier on today, Poland's interior minister Bartlomiej Sienkiewicz said HP planned to own up to the corruption claims and now Polish officials have unveiled details of the accusations.

According to Reuters, prosecutors claim a former government official in charge of IT procurement gave preferential treatment to firms – including HP – bidding on tech deals worth more than $39m (£23.29m).

In exchange for the favourable treatment, an HP exec handed the government official $529,000 as well as IT kit worth more than $36,000.

Both the ex-HP employee and the government official have been charged.

Update:

HP has agreed to pay $108m to the US Department of Justice (DoJ) and Securities and Exchange Commission measures in light of the corruption scandal as well as undertake certain compliance measures.

In a statement, HP's general counsel John Schultz said: "The misconduct described in the settlement was limited to a small number of people who are no longer employed by the company.

"HP fully cooperated with both the DoJ and SEC in the investigation of these matters and will continue to provide customers around the world with top quality products and services without interruption."