Microsoft Tied to Hundreds of Millions of Dollars in Foreign Bribes, Whistleblower Alleges

March 25th, 2022

Via: The Verge:

Elabd went public with his experiences in an essay published Friday by the whistleblower platform Lioness, alleging widespread bribery through Microsoft’s foreign contract business. Elabd estimates that more than $200 million each year is spent on bribes and kickbacks linked to the company, often in countries like Ghana, Nigeria, Zimbabwe, Qatar and Saudi Arabia. For the regions he worked in, he believes more than half of the salespeople and managers took part. If true, it’s a stunning look at the ongoing corruption associated with international tech contracting — and Microsoft’s ongoing struggles to contain it.

As director of emerging markets for the Middle East and Africa, Elabd saw many different versions of the problem. Sometimes, as in the African case, they were suspicious requests from the business investment fund. In another instance, he saw a contractor for the Saudi interior ministry receive a $13 million discount on its software — but the discount never made it back to the end customer. In another case, Qatar’s ministry of education was paying $9.5 million a year for Office and Windows licenses that were never installed. One way or another, money would end up leaking out of the contracting process, most likely split between the government, the subcontractor, and any Microsoft employees in on the deal.

This kind of corporate bribery is a widespread problem internationally, particularly in countries where the government is the primary customer and mid-level bureaucrats see bribes as part of the cost of doing business.

Leave a Reply

You must be logged in to post a comment.