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Capgemini Divests US Subsidiary Amid Controversy Over ICE Contract

In response to mounting pressure and public outrage, French tech giant Capgemini has announced the sale of its US subsidiary, which has faced backlash for its work with the immigration enforcement agency ICE.

Source: bbc.co.uk2 min read
Capgemini Divests US Subsidiary Amid Controversy Over ICE Contract
Image via bbc.co.uk

In brief

Capgemini has decided to sell its US subsidiary, Capgemini Government Solutions, after facing scrutiny for its contract with ICE that involves locating individuals for enforcement purposes. This decision follows significant public backlash and legislative pressures stemming from recent incidents involving the agency, prompting calls for transparency and sanctions against companies working with ICE. The subsidiary was set to receive over $4.8 million for its services, which have raised ethical concerns. Capgemini indicated that it could not ensure control over the subsidiary's operations in alignment with the company's core values.

French technology giant Capgemini has announced it will sell its US subsidiary after its work locating people for immigration enforcement agency ICE sparked outrage.

Capgemini has come under pressure from French lawmakers over a contract its subsidiary signed with ICE, amid international scrutiny over the methods used by the agency's agents in Minnesota.

The fatal shooting of US citizens Renee Nicole Good and Alex Pretti by Border Patrol agents in Minneapolis has sparked protests across the US and led to increased scrutiny of the agency.

Capgemini Government Solutions has been under contract since December 18 to provide skip tracing services for enforcement and removal operations, public records show.

Skip tracing services locate individuals whose whereabouts are unknown. Capgemini Government Solutions is set to be paid more than $4.8m (£3.5m) for its work tracing people for ICE, which is due to continue until March 15, US government listings show. It is one of 13 contracts the subsidiary holds with ICE.

Capgemini, one of the largest listed companies in France, stated that it has not been able to exercise appropriate control over certain aspects of this subsidiary's operations to ensure alignment with the Group's objectives. They added that the divestiture process of this business will be initiated immediately.

Criticism of ICE practices has intensified since the shooting of 37-year-old Pretti, the second fatal shooting of a US citizen since immigration agents began surging in several cities across the US, acting on the Trump administration's drive to increase deportations of illegal immigrants.

ICE has detained thousands since US President Donald Trump returned to the White House with a pledge to increase deportations. Last week, Capgemini's CEO Aiman Ezzat acknowledged on LinkedIn that the nature of the contract raised questions compared to their typical business practices.

The situation has prompted outrage among French politicians, with Finance Minister Roland Lescure calling for transparency regarding contracts with ICE, and opposition MP Hadrien Clouet advocating for sanctions against French firms associated with the agency.

Founded in 1967, Capgemini is an IT services and consulting firm, boasting over 340,000 employees globally and a valuation of €22bn (£19bn).

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