For $222 million
SAP closes bribery scandal
January 10, 2024, 10:00 p.m
Listen to article
This audio version was artificially generated. More info | Send feedback
The software company SAP is paying $222 million to settle investigations into bribery of government officials in seven countries. According to authorities, the alleged bribery practices span the period from 2014 to 2022.
German software company SAP will pay more than $220 million to settle foreign bribery charges by the U.S. Securities and Exchange Commission and the Justice Department. The SEC said it found that SAP allegedly violated the Foreign Corrupt Practices Act when it hired intermediaries to pay government officials to win public sector contracts from at least December 2014 through January 2022.
The SEC alleges that the bribes were recorded as legitimate business expenses in South Africa, Malawi, Kenya, Tanzania, Ghana, Indonesia and Azerbaijan. The company has entered into a three-year deferred prosecution agreement with the U.S. government related to allegations made by the U.S. Department of Justice (DOJ), specifically relating to the payment of bribes to officials in South Africa and Indonesia.
The DOJ alleges that SAP and co-conspirators made cash payments, political contributions, wire transfers and luxury goods to officials to gain an advantage in contracts with various government actors. SAP will also pay a $118.8 million fine to the DOJ and agree to forfeit approximately $103 million, of which $85 million will be settled through payments to the SEC. SAP has consented to the SEC’s order finding that the company violated the securities laws’ anti-bribery, record retention, and internal control over accounting provisions.
The company agreed to cease and desist from the violations and to pay compensation plus interest. SAP’s payment to the SEC will be offset by a payment of up to $59 million to the South African government in connection with a parallel investigation. The DOJ will count up to $55.1 million of its penalty against the amount SAP pays to end the South African authorities’ investigation.