Data at rest encryption

admin
May 8, 2009

Two days in the same week to run into FCPA issues is strange.
A prospect in Poland (ENEA) recently acquired Euro 6 million worth of disks from Hitachi and explained the purchase as a data loss prevention measure (Hitachi has data at rest encryption- i.e. the controller encrypts the data on the disk, which makes it unreadable if the disk is ever stolen).  The outstanding aspect of the deal is that it was done without a public tender. The details are a bit fuzzy but it appears to have been done by breaking up the order into a large number of small purchase orders below the RFP requirement. It’s highly likely that there was some money paid under the table for expediting the transaction.  People in Poland are predicting that it will eventually end up in a criminal investigation.  Hitachi Data Systems is a US company and needs to be compliant with the Foreign Corrupt Practices Act – and a bribe even via a third-party intermediary, is illegal under the FCPA – as companies like Johnson and Johnson and Monsanto know well.

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