Microsoft case: prosecution speaks about suspected fraud

Suspicions of fraud cannot be ruled out in the case of Microsoft Hungary, according to the latest statement by the Prosecution Service. An executive and employees of Microsoft’s Hungary office had been accused of bribing government officials in the country in order to obtain business.

The international press reported in July that Microsoft has agreed to pay about 25 million USD in settlements with the US Justice Department and the Securities and Exchange Commission over charges that its Hungary subsidiary violated the Foreign Corrupt Practices Act.

According to Microsoft Hungary’s admissions, beginning by at least 2013 and continuing until at least 2015, a senior executive and other employees of Microsoft Hungary participated in a scheme to inflate margins in the Microsoft sales channel in connection with the sale of Microsoft software licenses to Hungarian government agencies. In furtherance of that scheme, Microsoft Hungary executives and employees falsely represented to Microsoft that steep discounts were necessary to conclude deals with resellers who bid for the opportunity to sell Microsoft licenses to government customers. In actuality, the savings were not passed on to the government customers, but instead were used for corrupt purposes and were falsely recorded as “discounts” and stored in various tools and databases on Microsoft servers in the United States in violation of the Foreign Corrupt Practices Act”, the Justice Department wrote in July.

Source: Hungary Journal

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