SAP, a publicly listed German software company will pay a fine of over $220m amid bribery charges. The investigation was conducted by the US Department of Justice Department ("DOJ") and the Securities and Exchange Commission ("SEC") concerning violations of the Foreign Corrupt Practises Act ("FCPA").
SAP is accused of paying bribes in various forms such as cash payments, political contributions, and luxury goods to government officials in South Africa and Indonesia. Some of the corrupt practices by SAP include falsification of its books of account and records to obtain improper advantages in connection with various contracts within South African government departments.
SAP entered into a three-year deferred prosecution agreement "DPA" with the DOJ for conspiracy to violate the anti-bribery and books and records provisions of the FCPA involving bribes paid in South Africa and its conspiracy to violate the anti-bribery provisions of the FCPA for its scheme to pay bribes in Indonesia.
SAP also reached a related civil settlement with the SEC to resolve charges over similar alleged bribery schemes in Azerbaijan, Ghana, Kenya, Malawi, Tanzania as well as Indonesia in addition to South Africa.
The terms of the DPA comprise a $118.8m criminal fine and administrative forfeiture of $103.4m. Up to $55.1m of the criminal fine will be credited against amounts that SAP pays to resolve investigations by law enforcements in South Africa for related conduct. The full forfeiture amount will be credited against disgorgement that SAP pays to the SEC or South African Authorities.
The DOJ also expects SAP to continuously offer its unlimited assistance in the investigation for a period of at least three years under the conditions of the DPA.
This settlement follows the $315m December 2022 FCPA settlement by the Swiss company ABB relating to bribery of officials at South Africa's state-owned energy utility, Eskom.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
