SAP SE has agreed to a settlement exceeding $220 million to address allegations of violating the Foreign Corrupt Practices Act (FCPA). The company is accused of attempting to bribe government officials in South Africa and Indonesia.
According to a press release by the Department of Justice, SAP faces two counts of conspiracy charges for violating the anti-bribery and books and records provisions of the FCPA. The company allegedly attempted to bribe both South African and Indonesian officials. SAP has entered into a three-year deferred prosecution agreement due to these actions. Besides making bribe payments, SAP also allegedly provided luxury goods with the intention of benefiting South African and Indonesian officials. Between 2013 and 2017, SAP is said to have engaged in a scheme with South African officials to falsify its books and accounts in connection with various South African departments and cities.
The press release also reveals that bribes given by SAP to Indonesian officials occurred between 2015 and 2018 in an attempt to secure business advantages over competitors. The company will pay a criminal penalty of $118.8 million and an administrative forfeiture of $103,396,765. Beyond these penalty payments, SAP must continue cooperating with the department for ongoing and future criminal investigations that arise during the Deferred Prosecution Agreement (DPA). Due to their willingness to cooperate with the Justice Department, credits were granted to reduce the total amount they would have originally paid.
"SAP paid bribes to officials at state-owned enterprises in South Africa and Indonesia to obtain valuable government business," said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. "Today’s resolution—our second coordinated resolution with South African authorities in just over a year—marks an important moment in our ongoing fight against foreign bribery and corruption. We look forward to continuing to strengthen our relationship with South African authorities and others around the world."
