IBM group banned in Federal Government deals

The American group IBM announced that it was temporarily banned from making any businesses with the US Government, given an investigation recently opened against the IT giant but the Environment Protection Agency (EPA). The ban refers to all federal agencies and all IBM divisions.

EPA took this decision as part of an investigation on possible corruption affairs related to an offer tabled by IBM to the US administration in March 2006.

The Justice Minister convoked IBM and several employees of the group to testify and provide documents regarding past contacts between EPA employees and IBM officials.

„The U.S. government may be the largest IT buyer in the world, with an annual budget in excess of $70 billion. IBM is a major supplier of federal agencies, providing a full range of IT equipment and services to the government, including the world’s most powerful supercomputers.

IBM, in its statement, said it „has served the Federal agency community for many decades as a vendor in good standing and is committed to the highest standards of business ethics.” The company said employees receive training in business conduct „to ensure compliance with all applicable Federal requirements”, Computerworld informs.

The group has 30 days to challenge the ban decision, which can be prolonged to one full year.

Stock market investors didn’t seem too impressed with the investigation, shares decreasing only 0.99%, down to 144 dollars per share.