SAP to pay $222m to settle bribery charges including SA
SAP said it welcomed the settlements, and a related settlement with SA’s National Prosecuting Authority
11 January 2024 - 11:43
byJonathan Stempel
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The logo of German software group SAP is pictured in Vienna, Austria. Picture: REUTERS
German software company SAP agreed to pay about $222m to resolve investigations into bribery schemes in seven countries, US authorities said on Wednesday.
The US department of justice said SAP has entered a three-year deferred prosecution agreement to resolve criminal charges that it conspired to bribe government officials in Indonesia and SA to win business.
SAP also reached a related civil settlement with the US Securities and Exchange Commission to resolve charges over similar alleged bribery schemes in Azerbaijan, Ghana, Kenya, Malawi and Tanzania, as well as Indonesia and SA.
The company “has accepted responsibility for corrupt practices that hurt honest businesses engaging in global commerce,” US Attorney Jessica Aber in the Eastern District of Virginia said in a statement.
SAP’s payout includes a $118.8m criminal fine and $103.4m of forfeiture, the US justice department said.
In a statement, SAP said it welcomed the settlements, and a related settlement with SA’s National Prosecuting Authority.
The Germany-based company said it “separated from all responsible parties” more than five years ago, and that the accords end all compliance-related investigations in the US and SA.
Authorities said the alleged bribery schemes spanned from 2013 to 2022, and involved falsifying SAP's books and records so the bribes would appear to be legitimate business expenses.
According to the SEC, in one instance SAP SA paid in 2015 for government officials’ trips to New York, including meals and golf outings, to win a $13.2m contract with the City of Johannesburg.
Another instance involved an SAP Indonesia account executive allegedly messaging an intermediary: “Hehehe... This is government bro, to catch a big fish we need to use a large bait.”
The US justice department said SAP received credit for upgrading its compliance measures and internal controls, overhauling its commission structure, and co-operating with its probe.
It said SAP began co-operating immediately after misconduct accusations surfaced in SA media in 2017.
The US criminal charges would be dropped after three years if SAP complied with its deferred prosecution agreement.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
SAP to pay $222m to settle bribery charges including SA
SAP said it welcomed the settlements, and a related settlement with SA’s National Prosecuting Authority
German software company SAP agreed to pay about $222m to resolve investigations into bribery schemes in seven countries, US authorities said on Wednesday.
The US department of justice said SAP has entered a three-year deferred prosecution agreement to resolve criminal charges that it conspired to bribe government officials in Indonesia and SA to win business.
SAP also reached a related civil settlement with the US Securities and Exchange Commission to resolve charges over similar alleged bribery schemes in Azerbaijan, Ghana, Kenya, Malawi and Tanzania, as well as Indonesia and SA.
The company “has accepted responsibility for corrupt practices that hurt honest businesses engaging in global commerce,” US Attorney Jessica Aber in the Eastern District of Virginia said in a statement.
SAP’s payout includes a $118.8m criminal fine and $103.4m of forfeiture, the US justice department said.
In a statement, SAP said it welcomed the settlements, and a related settlement with SA’s National Prosecuting Authority.
The Germany-based company said it “separated from all responsible parties” more than five years ago, and that the accords end all compliance-related investigations in the US and SA.
Authorities said the alleged bribery schemes spanned from 2013 to 2022, and involved falsifying SAP's books and records so the bribes would appear to be legitimate business expenses.
According to the SEC, in one instance SAP SA paid in 2015 for government officials’ trips to New York, including meals and golf outings, to win a $13.2m contract with the City of Johannesburg.
Another instance involved an SAP Indonesia account executive allegedly messaging an intermediary: “Hehehe... This is government bro, to catch a big fish we need to use a large bait.”
The US justice department said SAP received credit for upgrading its compliance measures and internal controls, overhauling its commission structure, and co-operating with its probe.
It said SAP began co-operating immediately after misconduct accusations surfaced in SA media in 2017.
The US criminal charges would be dropped after three years if SAP complied with its deferred prosecution agreement.
Reuters
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