Human Rights Alert (NGO

Joseph Zernik, PhD PO Box 31440, Jerusalem 91313, Israel;

‫סייג לזכויות האדם‬
‫ד“ר יוסף צרניק‬ ; 91313 ‫04413, ירושלים‬


12-02-09 IBM, ESD, and corruption of governments IBM and EDS were involved in development of the electronic record systems of the courts of the State of Israel. According to the State Ombudsman 2010 report (60b): [1] - The corporations were awarded contracts with no bidding; - Development was initiated with no written specifications; - No state employees were involved in core supervision, only individuals on personal special consulting contracts; - The state customer did not perform any independent examination of the systems prior to implementation; - The servers are located on corporate grounds, not under the courts administration; - Unknown number of persons issued double smart ID cards. Previous reports documented that the systems, developed by these corporations undermined the integrity of court records in Israel. [2] Below are search results regarding involvement of IBM, EDS in other cases of corruption of non-US governments. As is often the case with high level corruption, one can assume that most cases are never exposed.
LINKS: [1] 10-00-00 State of Israel - Ombudsman's Report 60b, Ministry of Justice Computerization (2010) p 693 Et Seq [2] 12-02-07 PRESS RELEASE: False Dates, Certifications in the Electronic Records of the Supreme Court of the State of Israel

_____ IBM 1) IBM Fined USD10 Million For China Corruption March 21, 2011 | By Editorial Staff The U.S. Securities and Exchange Commission charged IBM with funneling gifts, cash, and entertainment to government officials in South Korea and China. Specifically, IBM was charged with violating the books and records and internal control provisions of the Foreign Corrupt Practices Act of 1977 as a result of the provision of improper cash payments, gifts, and travel and entertainment to government officials in South Korea and China.

2) IBM pays $10 mln to settle bribery March 19, 2011 6:03 AM EDT IBM has agreed to pay $10 million to settle a complaint its employees bribed South Korean and Chinese officials with cash, gifts and entertainment in return for business for more than a decade. The U.S. Securities and Exchange Commission alleged emloyees of IBM Korea and a local joint venture with LG Electronics paid bribes to South Korean government officials, according to a court document on Friday. 3) Former Illinois governor guilty in corruption case Former Gov. George Ryan was convicted of steering state contracts and leases, including a $25 million IBM computer deal, to political insiders. The Seattle Times, April 18, 2006. 4) Lawmakers hail arrest in IBM bribe case The ex-president of Argentina´s largest bank, Aldo Dadone, was arrested on charges of "illicit association" in connection with a high-profile 1993 corruption case involving IBM. Reuters Feb 9, 2001. 5) Swiss Banks Turn Over Millions to Argentina in IBM Bribery Scandal Swiss banks turned over $4.5 million to Buenos Aires authorities. These funds were traced to accounts held by several local central bank officials who admitted to accepting bribes from IBM-Argentina in 1995 in connection with a $250 million contract awarded to IBM Argentina by the state-owned Banco Nación for a computerized information system. 6) Suspicious death adds to IBM scandal Marcelo Cattaneo - an entrepreneur involved in the IBM bribe scandal was found hanged. October 1998. 7) IBM Cleanses Its China Ranks Of Corrupt Staff June 21, 2010 IBM's recent anti-corruption campaign in China has reportedly resulted in the resignation or downgrading of more than 120 employees in the company's Chinese offices. The Chinese media reported that about a month ago, over 120 employees from IBM China were investigated. Of them, about 100, including two top executives, were downgraded to a lower position and more than 20 others were asked to leave the company. According to China's CBN Weekly, most of the employees involved are from the company's sales and service departments. EDS 1) U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 20296 / September 25, 2007 SEC v. Chandramowli Srinivasan, Civil Action No. 1:07-CV-01699 (RBW)(D.D.C.) Former President of EDS's Indian Subsidiary Settles SEC Injunctive Action Relating to Violations of the Foreign Corrupt Practices Act