05.24.09

Microsoft Sued Over Its Corruption in Switzerland, Microsoft Debt Revisited

Posted in Europe, Finance, Fraud, Law, Microsoft, Red Hat at 2:23 am by Dr. Roy Schestowitz

Switzerland money

Summary: Microsoft is sued by Red Hat for secret deals while the red ink seems to be quietly dripping

MICROSOFT’S illegal dealings in Switzerland are a subject that we wrote about earlier this month in:

Switzerland, being a nation of banking for the most part at least in people’s minds, thrives in trust and responsibility. Swiss citizens knew what Microsoft was up to and they responded:

Asking Switzerland for more neutrality …

[...]

Well – a lot of people in Switzerland and almost 20 companies are not really happy. Among these companies is Red Hat. So Red Hat is joining the official appeal that asks the court to stop this contract, force BBL to evaluate the alternatives that exist and are in active use, even in Switzerland in the offical way of public tendering.

Effectively the appeal asks the BBL to defend competition. In a vendor neutral way. Based on technical merits. I think it is fair to ask. Let the court decide.

And ofcourse the irony of asking Switzerland of all countries to act in a (vendor-) neutral way is quite funny.

As the above already suggests, Red Hat’s legal team is stepping in.

Red Hat is a leader of an appeal by 18 technology companies of a Swiss government agency’s award of a no-bid contract to Microsoft. The challenge raises important issues of openness in government and of a level playing field for open source and other competitors of Microsoft. Red Hat is seeking a public bidding process that allows for consideration of the technical and commercial advantages of open source software products.

There is some press coverage only from Peter Judge, but hopefully the word will spread and inspire other countries to do the same thing. It is certainly a broader issue.

£8 million a year to Microsoft, with no public bidding. And that’s just the tip of the iceberg, say open source activists

Linux vendor Red Hat, and 17 other vendors, have protested a Swiss government contract given to Microsoft without any public bidding. The move exposes a wider Microsoft monopoly that European governments accept, despite their lip service for open source, according to commentators.

The Red Hat group has asked a Swiss federal court to overturn a three-year contract issued to Microsoft by the Swiss Federal Bureau for Building and Logistics, to provide Windows desktops and applications, with support and maintenance, for 14 million Swiss Franc (£8 million) each year. The contract, for “standardised workstations”, was issued with no public bidding process, Red Hat’s legal team reports in a blog – because the Swiss agency asserted there was no sufficient alternative to Microsoft products.

For Microsoft to stoop down to these tactics of secret deals is not particularly surprising. See the following writings about Microsoft’s financial situation, which suffers from endless dumping of software and hefty fines:

As that last link shows, Microsoft is already taking debt. In fact, Microsoft’s debt is now receiving the blessing of a criminal company, which gives Microsoft (MSFT) debt a high rating.

DaemonFC says that “Microsoft is trying to sell debt bonds” and Twitter explains that “the $30 billion of cash had conflicts with other reports of $20 and it’s more likely they have none.”

“Microsoft is actually done with buybacks.”Further he explains: “at the end of 2008 they said they would go $20 billion in debt to buy $40 billion of their shares. Over the last couple of weeks there were a number of articles that acted like this is what they were doing. I thought they had already done their buy backs.”

Microsoft is actually done with buybacks. They announced it one month ago and it is odd because the company has purchased its stock heavily for many years. At that stage, namely the point where undisclosed buybacks are complete (their scale is disclosed, not the purchasing pace), according to their plans they would be about $5 billion in debt. Unless they cut these buybacks short, it would only make sense for Microsoft to be in debt right now. But as Twitter says, “If Microsoft is done with buybacks, why are there so many BS articles about it? [...] and this earlier article acts as if no one was sure.” To quote: “We know not why a company the size and shape of Microsoft needs to raise money through debt issuance–it already has over $30 billion in cash at hand on its books–but if this is a cost-of-capital initiative that leads to the company buying back some of its own float, shareholders may be in for a treat.

What exactly is going on here? Someone is not telling the whole truth as there are contradictions that we are able to identify.

“There is such an overvaluation of technology stocks that it is absurd. I would include our stock in that category. It is bad for the long-term worth of the economy.”

Steve Ballmer

Share in other sites/networks: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Reddit
  • email

This post is also available in Gemini over at:

gemini://gemini.techrights.org/2009/05/24/msft-corruption-in-switzerland/

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

A Single Comment

  1. amd-linux said,

    May 24, 2009 at 4:34 am

    Gravatar

    Roy,

    while not being an expert in US GAP, it could be possible that

    - cash as accounted in the MS balance sheet care mostly short and medium term bonds, not real cash or account deposits at a bank
    - the actual losses in valuation of these bonds are not being reflected fully in their balance sheet because as the are accounted as “HTM”, hold to maturity, instead of mark to market, in the hope that the issuer of these bonds can repay them, but there is currently no market with fair prices or huge spreads.

    So, in essence, their balance sheets show us huge “cash” reserves but that might give a wrong picture about their liquidity. And liquidity is want you need – cause with liquidity you pay the bills. If you assets are not liquid, you might die as a rich man, so to say :-)

    Banks did not collapse because they ran out of assets but in the cases I am familiar with, they financed long term credits they issued with short term credits they borrowed – but when the market dried out, boom…… although they had this huuuuge assets in their portfolio.

    So maybe MS manouvred itself in a similar situation, which looked very attractive until 9 months ago, as you could realize huge interest rate profits by refinancing long term, high interest rate credit facilities with short term low rate loans.

    This is my personal speculation, I have not the slightest clue if this is true – but as a model, it IMHO can explain why MS needs to borrow money.

    http://en.wikipedia.org/wiki/Mark_to_market
    http://www.americanbanker.com/glossary.html?alpha=H

What Else is New


  1. The EPO's War on Justice and Assault on the Law -- Part 1: Rumours of a Kangaroo Court at EPOnia

    EPO's President Benoît Battistelli viciously attacked judges and slandered judges; António Campinos adopts a more 'soft power' approach, but nevertheless the impact is the same



  2. Bill Gates Exposed

    While publishers like ZDNet worked hard (on Microsoft's budget) to distract us from real scandals many nefarious things were happening; are we witnessing the fall of Gates?



  3. Welcome to ZDNet's 'Linux' Section...

    ZDNet, which defamed RMS to help distract from Bill Gates scandals, is doing what the sponsors (IBM, Microsoft, Linux Foundation) pay for



  4. Europe's Second-Largest Institution, the EPO, is Partly Based in the United States

    The EPO has outsourced its operations, including its 'courts', to the United States; this seems to be the so-called 'New Normal'



  5. You Look for Linux News and Instead It's Microsoft Noise and Openwashing

    Imagine trying to go about doing your own 'business', only to be confronted by paid-for plugs (sponsored) by the people trying to undercut/undermine your business; welcome to "Linux" in 2021



  6. Links 11/5/2021: Maui 1.2.2 and Tor Releases

    Links for the day



  7. The Next Generation of Free Software (or Software Freedom) Activism, Tackling Newer Problems

    New challenges as labour rights and human rights are further eroded, thanks to 'high' 'tech' with its very 'innovative' 'features'



  8. Mass Litigation Over the Salary Adjustment Procedure (SAP), Basically an Attack on All EPO Staff, Even EPO Pensioners

    “Importance of a binding and unambiguous erga omnes declaration” stressed by staff representatives of the EPO in a new letter to Benoît Battistelli‘s successor of choice, António Campinos, who has done nothing so far except attacking (or robbing) EPO staff, even EPO pensioners



  9. EPO 'Dialogue' With Staff Representatives is as Dead as 'Dialogue' With the Union

    “Yet another failure of social [sic] dialogue [sic] for Mr Campinos,” according to staff representatives, who rightly bemoan the Office president not giving a damn about staff; things quickly deteriorate in Europe’s second-largest institution, which does even worse things than granting loads of illegal European software patents (harming software producers and users alike)



  10. The FSF Needs to Reject OSI (and Open Source) Along With Much-Needed Rejection of the GNOME Foundation (Not the Same as the GNOME Project)

    Response to a good little speech (unscripted apparently) by Geoffrey Knauth, who explained his position on Open Source about a year ago



  11. Links 11/5/2021: Bodhi Linux 6.0, Coreboot 4.14, and DragonFly BSD 6.0

    Links for the day



  12. IRC Proceedings: Monday, May 10, 2021

    IRC logs for Monday, May 10, 2021



  13. Keynote by FSF President Geoff Knauth and Executive Director John Sullivan

    To quote the source: “FSF president Geoff Knauth became the president of the FSF in 2020, but has served on the FSF board of directors for over twenty years. FSF executive director John Sullivan started work with the FSF in 2003, and has never stopped since, with past roles including the FSF’s first Campaigns Manager and later the Manager of Operations.”



  14. Richard Stallman on Companies That Are “Only Pretending to be American Companies”

    Dr. Richard Stallman, the Free Software Foundation's founder, speaks about US politics being captured and dominated by large and multinational corporations in pursuit of just money and power



  15. Last Night's Talk by Richard Stallman About Software Freedom

    An inspiring new talk reminds many of us why loads of people continue to support the founder of the Free Software Movement



  16. Links 10/5/2021: Huawei's GNU/Linux Laptops and Kotlin 1.5.0

    Links for the day



  17. Richard Stallman on Writing rm, ls, and cp (Also Working on Bison)

    Dr. Richard Stallman, the Free Software Foundation's founder, explains what programs he developed in the eighties



  18. Raise the Roof

    Out comes the taxpayers’ subsidy, assured; with military the sky is the limit (and bailout guaranteed)



  19. Richard Stallman Replatformed 10 Hours From Now

    Link to the talk (when it goes live)



  20. [Meme] Bill Says, Bill Saves

    Bill Gates seems more likely to be indicted than to win a presidential election/term



  21. IRC Proceedings: Sunday, May 09, 2021

    IRC logs for Sunday, May 09, 2021



  22. According to the Wall Street Journal, Bill Gates’s Relationship with Jeffrey Epstein Caused the Bill-Melinda Divorce (While the Media Deflected to Dr. Stallman, Using a Phony 'Scandal')

    It’s becoming rather obvious that there’s real substance to accusations that Mr. Gates was in some sense enabling Jeffrey Epstein; while Gates-funded media told us that he was saving us from climate change and a pandemic (PR stunts for empathy and sympathy) Melinda worked really hard to distance herself from him, the father of her kids



  23. [Meme] Bill, What's Your Opinion?

    While it's ludicrous to insinuate that Mr. Gates somehow "started" COVID-19 he certainly "rode the wave" for reputation laundering purposes, profit, and distraction from scandals that precede the epidemic in China (and caused his marriage to break down)



  24. Links 10/5/2021: SystemRescueCD 8.03, KeePass 2.48 Released

    Links for the day



  25. How We Process and Upload Videos Hosted in Techrights

    With ffmpeg as the Swiss army knife (and various other utilities/programs ‘in between’) it’s possible to automate much of the pipeline associated with video production and self-hosting



  26. Richard Stallman's Free Software Speech in 2020 (FSF Turning 35)

    We've re-encoded (as WebM) the likely sole/only speech Richard Stallman gave about his movement last year; today seems like a suitable time to republish it because tomorrow a British university/group will replatform him (to use their term)



  27. The Chaos Theory

    Making GNU/Linux less stable and less predictable isn't good for GNU/Linux users; but it certainly helps sell Red Hat support contracts and vexation inside the community weakens Red Hat's competitors



  28. Gemini and Techrights: Still Growing in Gemini Space and Always Supporting/Loving the Protocol

    As we continue to expand in Gemini space (where our very large site became a very large and likely the largest capsule) it's worth explaining some of the overlooked merits of the protocol; unlike the World Wide Web (WWW) it does not impose things on the user/visitor, who is more or less in charge



  29. Links 9/5/2021: KDE Frameworks 5.82.0 Release and Patents Related to COVID Subjected to Waivers

    Links for the day



  30. Act More 'Professional' to Appease Mobs

    We should all think alike, dress alike, and like everybody (especially the business overlords)


RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

Recent Posts