SAP to Pay $220 Million Fine in Corruption Case

SAP, a German software company, has agreed to pay a total of over $220 million to settle investigations by the US Department of Justice and the US Securities and Exchange Commission (SEC) into violations of the Foreign Corrupt Practices Act (FCPA).

The investigations revealed that SAP had allegedly bribed officials in several countries, including South Africa, Malawi, Kenya, Tanzania, Ghana, Indonesia, and Azerbaijan, in order to secure contracts from authorities and governments.

According to the US authorities, SAP employed external intermediaries and consultants who paid bribes to government officials between December 2014 and January 2022. These bribes were recorded as legitimate business expenses in SAP’s books, despite some intermediaries failing to provide evidence of the agreed-upon services.

The SEC considers SAP a repeat offender, as charges were previously filed against the company in 2016 for accounting and internal accounting control breaches related to a bribery program in Panama.

SAP stated that it had separated from all responsible parties more than five years ago and had since enhanced its compliance program and internal controls. The company reassured its commitment to upholding ethics and compliance standards.

During the investigations, SAP cooperated fully with the authorities, which contributed to a mitigated fine. The company accepted responsibility for its actions and acknowledged the need for adequate controls across its subsidiaries.