SAP to pay $296 million to settle US bribery charges
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The German software giant was accused of conspiring to bribe government officials in Indonesia and South Africa to win business.
ST PHOTO: KELVIN CHNG
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NEW YORK - German software giant SAP has agreed to pay about US$222 million (S$296 million) to resolve investigations into bribery schemes in seven countries, the US authorities said on Jan 10.
The United States 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 South Africa to win business.
SAP also reached a related civil settlement with the US Securities and Exchange Commission (SEC) to resolve charges over similar alleged bribery schemes in Azerbaijan, Ghana, Kenya, Malawi and Tanzania, as well as Indonesia and South Africa.
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 US$118.8 million criminal fine and US$103.4 million of forfeiture, the Justice Department said.
In a statement, SAP said it welcomed the settlements, and a related resolution with South Africa’s National Prosecuting Authority.
The 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 South Africa.
The authorities said the alleged bribery schemes were 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 South Africa paid in 2015 for government officials’ trips to New York, including meals and golf outings, in order to win a US$13.2 million 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 Justice Department said SAP received credit for upgrading its compliance measures and internal controls, overhauling its commission structure, and cooperating with its probe.
It said SAP began cooperating immediately after misconduct accusations surfaced in South African media in 2017.
The US criminal charges would be dropped after three years if SAP complied with its deferred prosecution agreement. REUTERS
