Dispute threatens to derail HP contract to develop IACS

A contract dispute between IT firm Hewlett-Packard and the Agriculture Restructuring and Modernization Agency (ARMR) could slow down the integration of Poland's agri-business into the European Union. The current version of the contract between HP and the Polish government to develop the Integrated Management and Control System (IACS) could result in a euro 100 million loss to the national budget, said ARMR Chairman Aleksander Bentkowski during a press conference yesterday. A decision on whether or not to adopt a modified version of the contract for developing IACS, a system designed to enable direct subsidies from the EU to Polish farmers, will be made by the end of the week. Bentkowski added that he had presented to HP an annex to the agreement which changed the conditions of the agreement. No details are currently available about that addendum, but according to HP the government's current approach to renegotiating the contract does not guarantee finding a compromise. "HP is ready to conduct talks with regards to modifying the agreement, but negotiations should be held according to the appropriate law," said HP Chairman Andrzej Dopierala. "Accepting this proposal will put both parties in a situation where they could be accused of actions contrary to the law on public contracting," HP said in a statement. (Prawo i Gospodarka, p. 2; Puls Biznesu, p. 4) M.T.