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    Dunn denies spying link, Hurd admits HP made mistakes

Finance director now fingered as the start of the investigation as the leaking starts ahead of congressional hearings

By Iain Thomson, 28 Sep 2006 at 12:55

The disgraced former head of HP facing tough questions in today's US House Energy and Commerce Committee's investigative subcommittee meeting.

In a prereleased testimony she said that many board members were concerned about leaks to the press and the majority of the board told her finding the source was her top priority. She consulted HP's chief financial officer Bob Wayman for advice and left it up to him to hire the staff who took on the investigation that saw journalist's phones tapped.

"I was a director of the company, not an officer or employee, and had no authority to enter into contracts, approve invoices or handle any similar matters," Dunn writes.

"It was my assumption that My Wayman, having ultimate authority over all the resources involved in the security and investigations, as well as being one of the directors who felt most strongly about the importance of controlling leaks from the board, had provided authorisation for whatever work was undertaken."

She says that she kept the board informed that investigations were continuing and mentions that at no point was she aware of any illegality. She also disputes that an outside agency was hired to investigate, saying the team was already being contracted by HP.

She also has high praise for her successor Mark Hurd, who she describes as "among the most clear thinking, straightforward and honourable executives with whom I have come into contact."

Dunn's testimonial statement is more detailed, and for the first time details the extent of the investigation. Nine HP staff and nine journalists and their families were illegally investigated.

"What began as a proper and serious inquiry into leaks to the press of company information became a rogue investigation that violated our own principles and values," he wrote.

"There is no excuse for this aberration. It happened; it will never happen again."

He claims that while he was sent a report detailing the investigation's techniques he never got round to reading it; a mistake he acknowledges.

But

Nye also sent a copy of the e-mail to Kevin Hunsaker, HP's chief ethics director, who supervised the probe.

Hearings begin today in Washington. The company has released the following statement:

"HP has a distinguished history of conducting business with uncompromising integrity, which is core to everything we stand for both as a company and in our dealing with customers. We believe that there were isolated instances of impropriety and that these are not indicative in any way of how we conduct business. The inappropriate techniques that were applied during the investigation have no place at HP."

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