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    Super Moderator Newmexican's Avatar
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    Fiorina: I Didn't Know HP Contractor Was Dealing With Iran

    Do you believe her?
    Fiorina: I Didn't Know HP Contractor Was Dealing With Iran



    (Getty Images)
    By Greg Richter |
    Sunday, 20 Sep 2015 04:22 PM


    GOP presidential candidate Carly Fiorina said that neither she nor any other person in leadership was aware that a contractor was violating the U.S. sanctions against Iran when she was CEO of Hewlett-Packard.

    Appearing on "Fox News Sunday," Fiorina was asked about the issue by host Chris Wallace.

    "In fact, the SEC investigation proved that neither I nor anyone else in management knew about it," Fiorina said. "When the company discovered this three years after I left, they cut off all ties. The SEC investigated very thoroughly and concluded that no one in management was aware."

    Wallace noted that the company was making sales to Iran, and the subsidiary was named "wholesaler of the year."

    Fiorina said HP was a large company and it was impossible to know everything going on within the company.

    "The European subsidiary apparently was doing business with another company in the Middle East," she said. "That company was doing business with another company that was doing business was Iran. And when the company discovered this three years after I left, they cut off all ties with those companies."

    "Clearly," she said, "that wholesaler of the year was not honest in their dealings with us."

    http://www.newsmax.com/Newsfront/Car....rIT8CIAO.dpuf

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    She may be telling the truth as she believes it. As CEO, it was her position to know, or at least one of her deputies to know who ultimately w s their consumer and she obviously did not vet her contractor/distributor. I see where the layers were multiple to easily confuse and convince any investigation that it was innocent oversight. I believe she is an enemy of the nation! (But, look at Congress, aren't most republicans anti-America, pro-aliens)

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    Senior Member Judy's Avatar
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    http://www.bloomberg.com/politics/ar...-sales-in-iran

    Carly Fiorina Responds to Criticism of Hewlett-Packard Sales in Iran

    September 20, 2015 — 3:18 PM EDT
    Updated on September 21, 2015 — 1:38 PM EDT

    HP built up a 40 percent market share in Iran despite the fact that U.S. companies were banned from selling there.

    Carly Fiorina said Sunday that neither she nor Hewlett-Packard should be faulted for the sales of millions of HP printers in Iran when such business was prohibited by U.S. law.

    Appearing on Fox's Fox News Sunday, Fiorina said that despite being the CEO of HP when the Iranian sales took place via a third party, she was unaware of them.

    "First, HP, you need to remember, was larger than each of the 50 states," Fiorina said. "It's a larger budget than any one of our 50 states, and a global enterprise. And so it's impossible to ensure that nothing wrong ever happens. The question is what do you do when you find out."

    “In fact, the SEC investigation proved that neither I nor anyone else in management knew about it.”
    Carly Fiorina

    “Are you saying you didn’t know about it?” host Chris Wallace asked.

    “In fact, the SEC investigation proved that neither I nor anyone else in management knew about it…” she insisted, adding, “...when the company discovered this three years after I left, they cut off all ties. The SEC investigated very thoroughly and concluded that no one in management was aware.”

    A 2008 Boston Globe investigation found that, while U.S. companies were banned from selling goods to Iran, an Indian company in Dubai called Redington Gulf had sold HP printers there. They sold them so well, in fact, that HP had 41 percent market share in Iran by 2007. Redington Gulf obtained the printers through a European subsidiary.

    Wallace asked Fiorina why HP had named Redington Gulf its "Wholesaler of the Year" award in 2003 if the company wasn't aware of its sales to Iran, Fiorina again deflected blame.

    "The wholesaler of the year that you're describing was doing business with another company that was doing business with Iran. Clearly that wholesaler of the year, which should not have been wholesaler of the year, was not honest in their dealings with us, and they were not honest in their dealings with this third company."

    Fiorina was also asked about the HP's struggles during her tenure, which included layoffs of 30,000 employees and a drop in share price. Fiorina said, as she has said before, that her time at HP (from 1999 until early 2005) was a period marked by widespread faltering in the technology industry.

    "It's important to remember that I led HP during the worst technology recession in 25 years," Fiorina said, saying the Nasdaq technology stock index dropped by 80 percent and took 15 years to recover from that recession.

    Host Chris Wallace pointed out that, by the time Fiorina was fired, the Nasdaq had only dropped 23 percent, compared with HP's share price, which was down twice as much at the same time.

    "Yes and that technology-heavy stock index dropped again," Fiorina said. "There are people who look at a stock one day at a time. I never led that way."

    Fiorina stressed that those who were laid off at HP got generous severance packages and career counseling, and said that if she were the president, government jobs would wind up cut, too.

    "When you have a big, bloated bureaucracy costs too much, that is becoming inept—and by the way that’s what we have in Washington, D.C.—then there are some jobs that have to go away," she said. "And I will say as president of the United States, 256,000 baby boomers are going to retire out of the federal government in the next four or five years. I will not replace a single one."

    CORRECTION: The original version of this story misstated the number of baby boomers who will retire out of the federal government.
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  4. #4
    Senior Member Judy's Avatar
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    41% market share means 41% of all printers sold in Iran were HP printers and HP didn't know that until a Boston Globe report exposes them?

    No, I don't believe that for a second. These printers require warranties, replacement parts, ink and other constant supply items to maintain and operate. There's no way HP didn't know that 4 out of every 10 printers in Iran were theirs.
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    http://www.huffingtonpost.com/entry/...b0fde8b0cf291b

    Carly Fiorina's Defense Of Hewlett-Packard's Iran Dealings Has Some Big Holes

    The GOP presidential candidate isn't telling the whole story.

    Sam Stein
    Senior Politics Editor, The Huffington Post

    Igor Bobic
    Associate Politics Editor, The Huffington Post

    Posted: 09/21/2015 03:31 PM EDT | Edited: 09/21/2015 04:03 PM EDT

    WASHINGTON -- Republican presidential candidate Carly Fiorina's explanation for a controversial business practice undertaken by Hewlett Packard during her time running that company appears incomplete, if not misleading.

    On Sunday, the rising GOP primary star was pressed on allegations that her former company did business with Iran during a time when U.S companies were prohibited from doing so. In response, Fiorina stressed three separate points: that she was unaware that a subsidiary of Hewlett Packard had been selling printers in that country; that an "investigation" by the Securities Exchange Commission "proved" her innocence; and that HP only discovered the transactions three years after she left the company:

    Three years after -- in fact the S.E.C. investigation proved that neither I nor anyone else in management knew about it, and the facts of the matter were the European subsidiary apparently was doing business with another company in the Middle East. That company was doing business with another company, that was doing doing business with Iran. And when the company discovered this three years after I left, they cut off all ties with those companies. The S.E.C. investigated very thoroughly and concluded that no one in management was aware.

    All of these points are missing significant nuance, and some seem at odds with surrounding context.

    On the first point, it is true that there is no direct evidence showing Fiorina was aware of HP's business dealings in Iran. Moreover, sanctions experts say it is not uncommon -- nor illegal -- for corporate executives to be caught off guard when a distributor is doing business with a sanctioned country.

    "The typical practice for those who comply with the law is to put a clause in the distribution contract indicating that the distributor will not distribute the product to embargoed country and to anyone you know who will distribute to embargoed companies," Clif Burns, a D.C.-based lawyer who specializes in export law, told the Huffington Post. Burns was speaking generally and not about HP specifically. "You are going to see American products all over Iran and they make it through a circuitous route. It is almost always done now without the knowledge or the participation of the manufacturer itself."

    But if Fiorina was unaware of HP products ending up in Iran, it appears to be partially because she wasn't looking or listening.

    After she took over HP in 1999, the company’s Middle East general manager called Iran "a big market for Hewlett-Packard printers.” Fiorina herself echoed that assessment about the Middle East region in 2003, though she never specifically cited Iran. The same year, as a reflection of their growing business, HP named Redington Gulf, a subsidiary in the region, their "Wholesaler of the Year."
    Justin Sullivan via Getty Images

    Even after she left the company in 2005, Fiorina maintained that HP was in full compliance of sanctions laws. In August 2010, while running for Senate in California, she defended her company’s dealings with Iran by arguing that its people could use HP ink to publicize the regime’s atrocities.

    “Isn't it wonderful that Dell PCs and Apple iPhones are in Iran, because this is why we know that a woman has been condemned to be stoned to death because she is accused of adultery,” Fiorina told Lady Globes magazine, an Israeli publication. She added, “We should be encouraging elements of political reform inside Iran, and one of the ways to do that is by selling communication in and out.”

    With respect to Fiorina's suggestion that "the S.E.C. investigation proved that neither I nor anyone else in management knew about" the company's business dealings in Iran, it's not entirely clear what investigation she's discussing.

    In late November 2008, the Boston Globe first reported that HP's subsidiary, Redington Gulf, was selling products in Iran. On Feb. 10, 2009, the SEC sent a letter to HP which it described as a "review process" to "assist you in your compliance with the applicable disclosure requirements." In it, the commission said it was aware of the Globe's report and asked several questions related to business dealings in Iran and other sanctioned countries.

    On March 12, 2009, HP's Vice President and Deputy General Counsel Paul T. Porrini, responded. In the letter, he laid out in meticulous detail how its Iran dealings were never direct and, therefore, were legally above board. He estimated that the company did $120 million in business in Iran in fiscal year 2008 just on printers and printer supplies:

    All known sales of HP’s products into Iran involved sales by Hewlett-Packard Europe B.V., a Dutch subsidiary, through its Meyrin Branch located in Geneva, Switzerland (“The Meyrin Branch”), which is responsible for sales of HP printers and related parts and supplies (e.g., ink and toner) throughout the Middle East and Africa.

    The products that have been sold by The Meyrin Branch to Redington Gulf and the other distributors were limited to printers and printer supplies that were authorized for redistribution into Iran under the Export Administration Regulations (the “EAR”) administered by the Department. More specifically, substantially all of the printers authorized for distribution were EAR 99 Products, while two products were classifiable under Export Commodity Classification Number 5A992. Thus, there are no restrictions against the redistribution of these products into Iran under Departmental licensing requirements for that country. In addition, neither the Dutch subsidiary nor The Meyrin Branch is a “United States person” within the meaning of section 560.314 of the Iranian Transaction Regulations as administered by the Office of Foreign Assets Control (“OFAC”) of the U.S. Department of the Treasury. Thus, the regulations administered by OFAC are not applicable to the sales of products by The Meyrin Branch to Redington Gulf and the other distributors authorized to sell for redistribution into Iran.

    On March 30, 2009, the SEC responded. The issue of business with Iran never comes up in the letter. There is no formal exoneration, nor is there an indictment. The correspondence ends there.

    For Fiorina to call this an "investigation" -- let alone a thorough investigation -- gives it an imprimatur it almost certainly doesn't deserve. A spokesman for the SEC told The Huffington Post that the agency conducts such inquiries on a routine basis via its annual fiscal year filing website. In fact, when the SEC issued its letter, HP itself called the query part of a "routine staff review" of the company's annual filing. The Fiorina presidential campaign did not return multiple requests for comment.
    Bloomberg via Getty Images

    As for Fiorina's assertion that HP only discovered the Iran-related transactions three years after she left the company, that too seems unlikely. The company, after all, was known to use subsidiaries to circumvent sanctions law. In a September 2002 congressional hearing, both witnesses and lawmakers talked openly about how HP used a subsidiary in Singapore to send desktop computers to Iraq (itself sanctioned). Then-Rep. Bob Stump (R-Ariz.), who chaired the House Armed Services and Veterans Affairs committee, accused HP of "disserving our country" by doing "an end run around American laws."

    HP’s lobbying activities in Washington during Fiorina’s tenure also suggest that the sanctions issue was at least on the company’s radar. According to a review of Senate records from 1999 to 2004, HP’s in-house lobbyists reported they lobbied Congress and the White House on “unilateral sanctions.” The filings didn't mention Iran specifically. But considering it was the biggest potential business partner being sanctioned, it's highly unlikely that the country wasn't discussed.

    In February 2005, Fiorina was forced to resign from HP amid wide criticism that she had mismanaged the company. That same month, Marketplace ran a story on efforts by the Bush administration to pressure subsidiaries of HP and Xerox to stop doing business in Iran. In it, reporter Borzou Daraghi quoted a business consultant named Rakki Ansari. The transcript, below, is via LexisNexis.

    DARAGAHI: Nirdaman Computer Center in Tehran bustles with activity. Here is the heart of Iran's growing IT business. Among the biggest brands are Xerox and Hewlett-Packard. Ansari says American companies can't afford to lose market share here.

    Mr. ANSARI: If you look at companies like, for instance, Hewlett-Packard or Xerox, Kodak, etc., this market is indeed their largest market in the Middle East.

    DARAGAHI: With 70 million increasingly affluent residents, Iran is becoming an attractive market. Methi Bothari's shop sells thousands of dollars a day in printers and scanners from Hewlett-Packard. He says HP simply beats the competition.
    Last edited by Judy; 09-22-2015 at 11:37 AM.
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    NO! She also thinks we should be enemies with Putin, (biting off way more than she could chew). She also misled @ the Planned Parenthood videos depicting footage that actually was not from PP - all to play up to the people. Women have rights - PP should be kept to rules and those rules need to be updated. Hopefully that will happen and bring a positive result for them and others in that field. Overpopulation is a huge issue. Bill O'Reilly said a fetus has DNA but did not mention so does an egg that is expelled by nature every month if unfertilized and so does sperm and we know not every drop of that is used for conception purposes.

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    Senior Member Judy's Avatar
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    So everyone knew. Congress knew. Bush knew. HP lawyer knew. The Boston-Globe knew. SEC knew. Everyone knew. So of course, Fiorina knew. They intentionally sold the printers through the third party to evade sanctions laws.

    There are three issues:

    1. Was the way HP was selling the printers to evade US sanctions against Iran legal? Maybe it was "legal". Did it defy the spirit of the sanctions? Of course.

    2. Did Fiorina know that HP was selling printers to Iran in violation of sanctions but through third parties to evade culpability? Of course, it was their legal plan to make the sales in this manner and lobby authorities to get away with it.

    3. Did Fiorina lie to the American People about HP's role in selling printers to Iran when such sales violated sanctions against Iran? Of course she did.

    We don't need another liar in our political system.
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    Senior Member Judy's Avatar
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    Quote Originally Posted by artist View Post
    NO! She also thinks we should be enemies with Putin, (biting off way more than she could chew). She also misled @ the Planned Parenthood videos depicting footage that actually was not from PP - all to play up to the people. Women have rights - PP should be kept to rules and those rules need to be updated. Hopefully that will happen and bring a positive result for them and others in that field. Overpopulation is a huge issue. Bill O'Reilly said a fetus has DNA but did not mention so does an egg that is expelled by nature every month if unfertilized and so does sperm and we know not every drop of that is used for conception purposes.
    Exactly. Fiorina lied about the video and Planned Parenthood.
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