Feeds

IBM and PwC settle kickback charges

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

The essential guide to IT transformation

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. ®

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Broadband slow and expensive? Blame Telstra says CloudFlare
Won't peer, will gouge for Internet transit
prev story

Whitepapers

A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.