SAP, the German enterprise technology firm with a market value of $192 billion, is set to pay over $220 million to settle investigations into worldwide "recidivist" foreign bribery practices, US authorities announced on Wednesday.
According to CNBC, under the terms of a three-year deferred prosecution agreement with federal prosecutors, SAP is accused of breaching the Foreign Corrupt Practices Act by allegedly bribery government officials in Indonesia and South Africa, according to the Justice Department.
"SAP paid bribes to officials at state-owned enterprises in South Africa and Indonesia to obtain valuable government business," Nicole Argentieri, acting assistant attorney general, said in a statement.
The Justice Department further said in a release that SAP and its employees bribed government officials in those countries with cash, political donations, luxury goods and shopping sprees.
At the same time, the company will also pay a $98 million disgorgement to the Securities and Exchange Commission. The company has been accused of bribing officials in Azerbaijan, Ghana, Indonesia, Malawi, Kenya and South Africa on its own books as "legitimate business expenses."
In total, the company will have to pay $235 million.
"SAP has accepted responsibility for corrupt practices that hurt honest businesses engaging in global commerce," said US Attorney Jessica D. Aber for the Eastern District of Virginia.
"We will continue to vigorously prosecute bribery cases to protect domestic companies that follow the law while participating in the international marketplace."
The US said that it would drop the criminal charges against the firm after three years if SAP complies with the announced agreement.
In a statement, SAP said it "welcomes the conclusion of these matters and will fully comply with the terms of the agreements."
"SAP separated from all responsible parties more than five years ago and has since significantly enhanced its global compliance program and related internal controls," the Walldorf-based company said.
