IBM investigated over rule breach

9 April 2008
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10 April 2008

IBM has been suspended from bidding for any new US government contracts while it is investigated over claims it flouted procurement rules.

The Environmental Protection Agency (EPA) is investigating the company, following allegations it violated public procurement rules when bidding for work in March 2006.

IBM will continue work on existing contracts, but the temporary suspension will prevent the company from bidding for new work for up to a year, pending completion of the investigation.

An EPA spokesman said: "The action was taken by the EPA suspending official as a temporary measure while the agency reviews concerns raised about potential activities involving an EPA procurement."

IBM said it is co-operating with the investigation and is committed "to the highest standard of business ethics". It is to appeal against the ban.

It added it had been unaware of any action being considered before the suspension, and initiated discussions with the EPA and US Attorney's office to get more details.

A spokesman for the firm said government transactions contributed to 1 per cent of IBM's revenue, which was $98.8 billion (£49.6 billion) in 2007.

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