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IBM faces bidding ban in South Korea
Seoul, Jan 06: US technology giant IBM Corp. could be banned from bidding for South Korean government contracts following a corruption probe of its South Korean unit, Seoul`s anti-trust watchdog said today.
Seoul, Jan 06: US technology giant IBM Corp. could be banned from bidding for South Korean government contracts following a corruption probe of its South Korean
unit, Seoul's anti-trust watchdog said today.
Prosecutors investigating IBM Korea, a subsidiary of
the US computer giant, last week indicted 48 people on
bribery and other irregularities.
The Fair Trade Commission (FTC) said it had filed a complaint against IBM Korea and other businesses linked to the biggest corporate corruption case involving a foreign company or subsidiary doing business in South Korea.
"Businesses, if involved in bidding irregularities, are liable to a ban from participating in future government procurement projects according to law," Shin Yong-Ho, an FTC spokesman, told.
The anti-trust watchdog "is authorized to inform each state procurement agency of those firms violating fair trade rules" to restrict their bidding, he added.
Prosecutors have accused officials at IBM Korea and two related firms -- LG IBM and Winsol -- of bribing government officials or colluding with other firms to secure 66 billion won (55 million dollars) in government contracts.
LG IBM, a PC firm, is a joint venture between IBM Korea and LG Electronics. Winsol sells IBM computer servers.
Those arrested include IBM Korea's executive director Jang Gyeong-Ho and an unspecified number of government officials. Bureau Report
The Fair Trade Commission (FTC) said it had filed a complaint against IBM Korea and other businesses linked to the biggest corporate corruption case involving a foreign company or subsidiary doing business in South Korea.
"Businesses, if involved in bidding irregularities, are liable to a ban from participating in future government procurement projects according to law," Shin Yong-Ho, an FTC spokesman, told.
The anti-trust watchdog "is authorized to inform each state procurement agency of those firms violating fair trade rules" to restrict their bidding, he added.
Prosecutors have accused officials at IBM Korea and two related firms -- LG IBM and Winsol -- of bribing government officials or colluding with other firms to secure 66 billion won (55 million dollars) in government contracts.
LG IBM, a PC firm, is a joint venture between IBM Korea and LG Electronics. Winsol sells IBM computer servers.
Those arrested include IBM Korea's executive director Jang Gyeong-Ho and an unspecified number of government officials. Bureau Report