The Register® — Biting the hand that feeds IT

Feeds

IBM and PwC settle kickback charges

Pay $5.3m to keep government happy. Wait a minute, isn't that...?

Steps to Take Before Choosing a Business Continuity Partner

IBM and accounting firm PricewaterhouseCoopers have agreed to pay a total of about $5.3m to settle allegations that they gave illegal kickbacks to reel in contracts with US government agencies.

IBM has agreed to fork over $2,972,038.50 to make amends, and PwC will pay $2,315,662.

The US Department of Justice said both IBM and PwC separately cooperated in the investigation and won't face further litigation on the matter. The department alleges that IBM and PwC knowingly solicited and made payments to a number of companies with whom they have global alliances.

Both companies have denied the kickback allegations, and said the settlement is not an admission of guilt.

"IBM did not engage in kickbacks, false claims, or any other illegal conduct alleged in the various complaints that have been filed in this matter," said IBM in a statement. "IBM's business practices and policies comply with all applicable statutes and regulations, including requirements related to government contracts."

The DoJ announced the settlement today as a part of its ongoing investigation of government technology vendors and consulting firms that has already fingered Accenture, Hewlett-Packard and Sun Microsystems.

"The payment of kickbacks or illegal inducements undermines the government procurement process," Peter Keisler, Assistant Attorney General for the Civil Division, said in a statement. "The Justice Department is acting in these cases and in the overall investigation to protect the integrity of the procurement process for technology products and services."

The charges stem from a complaint filed by Norman Rille and Neal Roberts in 2004 under the whistleblower provisions of the False Claims Act. The statute allows people who file successful actions alleging fraud in the government to receive a share of the money. That could mean some extra spending money for Rille and Roberts. The DoJ said both will receive an amount to be determined in the near future.

The government will give them a fair share, we're sure. Remember, boys, that five bucks will last longer if you buy from the dollar menu. ®

Ensure Ease of Recovery with Asigra’s Agentless Software

Latest Comments
Anonymous Coward

Something Smelly...

So if there was nothing illegal, why are they paying?

Further why pay to avoid a law suit - isn't this just buying your way out of trouble, not so different from paying to get contracts, is it.....

0
0

More from The Register

Thanks, NSA: Amazon sales of Orwell's 1984 rise 9,500%
Citizens of Oceania bone up on the new reality
 breaking news
BBC lied to Parliament about doomed £100m IT monster, thunder MPs
Axed DMI ballooned and burst while watchdogs sang Kumbaya
Microsoft to open Windows Stores inside 600 Best Buy locations
Product showcases 'must be seen to be believed'
 breaking news
Author Iain (M) Banks falls to cancer at 59
Misses the release of his final work
 breaking news
What did the Lehman Brothers implosion look like to a techie?
Insider tells all about the Gnab Gib at Lehmans
It's official: 'tweet' an English word – not just in the avian sense
If the Oxford English Dictionary says it is so, then it is so
 breaking news
The only Waze is Google: Ad giant tipped to gobble map app 'for $1.3bn'
Pac-Man-satnav-ish upstart in bidding war with Apple, Facebook
 breaking news
1-in-10 e-tomes 'are self-published'... most are 'rubbish' says book ed
Publishing man scoffs at go-it-alone writers, ursines still fouling in forests
 breaking news