By BI: Carly Fiorina’s illegal dealings with Iran, during her tenure as CEO of HP, were exposed in the Boston Globe which broke the story that Hewlett Packard had been selling its printers in Iran through a subsidiary company in Dubai, despite the fact that a trade embargo had been in place against the Iranian regime since 1997. The sales were halted shortly after the business dealings were published by the Globe.
Texas GOP Fiorina claimed no knowledge that the approximately $100 million of sales through the subsidiary were coming from Iran, despite having been HP CEO (since 2000) while it was happening. Aninvestigation by the San Jose Mercury News last year showed that Fiorina did know.
“Fiorina in 2003 noted Middle East sales were defying global trends, and, as the Merc notes, HP’s partner there issued a press release saying sales topped $100 million and that “the seeds of the Redington-Hewlett-Packard relationship were sowed six years ago for one market – Iran.”
Three of the three HP partners in the Middle East contacted by Christopher Stewart for a story in Portfolio magazine’s August 2008 issue readily agreed to ship printers to Iran. Portfolio notified HP of the incidents, but the company didn’t condemn them, instead refusing comment. Fiorina was gone as CEO at this point, but Portfolio noted that diversion of American products to Iran through Dubai had been going strong for many years, while Fiorina was CEO.
HP had an office in the Dubai free-trade zones notorious for funneling American goods to Iran, Portfolio reported — so it had ample means to be aware of how its products were being shipped.
After the SEC noticed the prevalance of HP products in Iran, it asked the company about the matter, and got back a letter from the company saying its Dutch subsidiary sold $120 million to Iran in 2008.
Finally, in January 2009, HP severed ties with Redington Gulf, the distributor that had publicly bragged about its Iran trade six years earlier.”
Chuck DeVore, who worked for the Reagan administration Commerce department on import issues, and also was an aerospace industry executive, says Fiorina’s responses on the Iran deal are not credible.
“We’ve known for some time that throughout Fiorina’s watch, Hewlett-Packard used Redington Gulf in Dubai — named after its co-founder, William Redington Hewlett — as a front company for the circumvention of U.S. export restrictions to the Islamic Republic of Iran. If Carly Fiorina tolerated that level of unethical business practices in the Middle East, it is sadly predictable that she would exercise the same moral laxity elsewhere.
“When confronted with this news, Fiorina will do what she always does: deny knowledge despite having been a famously micromanaging and bottom-line-oriented CEO.” Fiorina was forced out of Hewlett Packard in 2005.