McAfee again finds irregularities at Israel unit

An investigative team from the company is conducting hearings for Israeli sales and support staff.

McAfee Inc. (NYSE: MFE) is again investigating irregularities at its Israel unit 20 months after an investigation that resulted in the ouster of McAfee territory manager Yaniv Alfi. Sources inform ''Globes'' that an investigative team from the company is in Israel and is conducting hearings for Israeli sales and support staff, including Israel sales manager Tzafrir Haklai.

Israelis have become inured to repeated investigations by international companies into irregularities by local managers as the companies attempt to apply corporate bylaws globally. Nonetheless, the case of McAfee appears to be particularly sad. Haklai was appointed to his post in late 2008 after Alfi was sent on enforced leave and later resigned in the wake of the company's previous investigation.

The current situation is different. Haklai has not, so far as is known, been sent on forced leave, nor has he been suspended, as has been the case in similar affairs. Nevertheless, McAfee is holding hearings for six employees, the majority of the Israeli unit's staff.

It should be noted that such investigations are also conducted on a regular basis, without any specific cause. This was the temper of McAfee's response, saying, "This is a routine inquiry as part of the company's operating and business practice. McAfee periodically conducts such routine inquiries at its offices around the world."

Even if the present inquiry is indeed routine, McAfee Israel's employees still fear possible consequences for them, based on the experience from the previous investigation. The sources said that employees have hired lawyers to represent them at the hearings.

It should be noted that such inquires are often closed internally, and with the quiet departure of employees in exchange for generous severance packages. In some cases, the local general manager has been suspended and later resigned. The present McAfee inquiry may also end with an honorable retirement by some employees.

Published by Globes [online], Israel business news - www.globes-online.com - on March 8, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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