SAP To Pay $98 Million To SEC To Settle Bribery Charges

By Ben Glickman

German software company SAP will pay nearly $100 million to settle U.S. Securities and Exchange Commission charges related to foreign bribery schemes.

The SEC on Wednesday said it found that SAP allegedly violated the Foreign Corrupt Practices App when, from at least December 2014 to January 2022, the company hired intermediaries to pay government officials to obtain public-sector business.

The SEC alleges the bribes occurred in South Africa, Malawi, Kenya, Tanzania, Ghana, Indonesia and Azerbaijan and were recorded as legitimate business expenses.

The charges are part of a coordinated global settlement which includes the U.S. Department of Justice and authorities in South Africa.

SAP consented to the SEC's order finding it violated anti-bribery, recordkeeping and internal accounting controls provisions in securities law. The company agreed to cease and desist from the violations and to pay disgorgement of $85 million plus prejudgement interest of more than $13.4 million.

SAP's payment to the SEC will be offset by up to $59 million to the South African government in connection with a parallel investigation.

SAP also will pay the DOJ a $118.8 million criminal fine and agreed to a forfeiture of about $103 million, $85 million of which will be satisfied by disgorgement payments to the SEC.

Write to Ben Glickman at [e-mail]

(END) Dow Jones Newswires

January 10, 2024 14:10 ET (19:10 GMT)

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