procedure to have been."
Mrs. Nourbash translated and Dadgar nodded.
Paul continued, speaking slowly and rather formally to help the translator.
"In 1975 an EDS executive, Paul Bucha, learned that the Ministry was
looking for a data-processing company experienced in health insurance and
social-security work. He came to Tehran, had meetings with Ministry
officials, and deteriiiined the nature and scale of the work the Ministry
wanted done. He was told that the Ministry had already received proposals
for the project from Louis Berger and Company, Marsh & McClennan, ISIRAN,
and UNIVAC, and that a fifth proposal was on its way from Cap Gemini
Sogeti. He said that EDS was the leading data-processing company in the
United States and that our company specialized in exactly this kind of
health-care work. He offered the Ministry a free preliminary study. The
offer was accepted."
When he paused for translation, Paul noticed, Mrs. Nourbash seemed to say
less than he had said; and what Dadgar wrote down was shorter still. He
began to speak more slowly and to pause more often. "The Ministry obviously
liked EDS's proposals, because they then asked us to perform a detailed
study for two hundred thousand dollars. The results of our study were pre-
sented in October 1975. The Ministry accepted our proposal and began
contract negotiations. By August 1976 the contract was agreed upon."
"Was everything above board?" Dadgar asked through Mrs. Nourbash.
"Absolutely," Paul said. "It took another three months to go through the
lengthy process of getting all the necessary approvals
36 Ken Folktt
from many government departments, including the Shah's court. None of these
steps was omitted. The contract went into effect at the end of the year."
"Was the contract price exorbitant?"
"It showed a maximum expected pretax profit of twenty percent, which is in
line with other contracts of this magnitude, both here and in other
countries. "
"And has EDS fulfilled its obligations under the contract?"
This was something on which Paul did have firsthand knowledge. "Yes, we
have."
"Could you produce evidence?"
"Certainly. The contract specifies that I should meet with Ministry
officials at certain intervals to review progress: those meetings have
taken place and the Ministry has the minutes of the meetings on file. The
contract lays down a complaints procedure for the Ministry to use if EDS
fails to fulfill its obligations: that procedure has never been used. "
Mrs. Nourbash translated, but Dadgar did not write anything down. He must
know all this anyway, Paul thought.
He added: "Look out the window. There is our data center. Go and see it.
There are computers in it. Touch them. They work. They produce information.
Read the printouts. They are being used."
Dadgar made a brief note. Paul wondered what he was really after.
The next question was: "What is your relationship with the Mahvi group?"
"When we first came to Iran we were told that we had to have Iranian
partners in order to do business here. The Mahvi group are our partners.
However, their main role is to supply us with Iranian staff. We meet with
them periodically, but they have liWe to do with the running of our
business."
Dadgar asked why Dr. Towliati, a Ministry official, was on the EDS payroll.
Was this not a conflict of interest?
Here at last was a question that made sense. Paul could see how Towliati's
role could appear irregular. However, it was easily explained. "In our
contract we undertake to supply expert consultants to help the Ministry
make