Cisco pursuing bribery investigation in FSU countries
Resellers under spotlight
Cisco is investigating the probity of unnamed resellers in Russia and other former Soviet Union countries, to determine whether or not it could be exposed to violations of US anti-bribery laws.
The company first discussed the allegations in this December 23 blog post, which went under the radar in the lead-up to Christmas. The issue is now making headlines because of a mention in regulatory filings.
As Reuters reports, the Borg is “investigating potential violations of U.S. bribery laws by the company and its resellers in Russia, Eastern Europe and Central Asia, but doesn't expect financial results to be materially affected”.
The US Justice Department and the SEC requested the investigation, Reuters continues.
In the December blog post, Cisco's Roxane Marenberg, VP of compliance systems, wrote “we have found no basis to believe that Cisco’s activities are in violation of any law, and indeed the information we were provided does not allege wrongdoing by any of Cisco’s executive management”.
In its filing, Cisco noted that the countries covered by the investigation comprise less than two per cent of its revenues, so the outcome of any investigation isn't expected to have “a material adverse effect on its consolidated financial position, results of operations, or cash flows”. ®