Software giant SAP has agreed to pay nearly $100 million to resolve bribery accusations in the US and South Africa, marking the end of a scandal that spanned multiple countries and several years.
According to reports, the US Securities and Exchange Commission (SEC) found that the Germany-based firm paid bribes to government officials through third parties to secure contracts in South Africa, Malawi, Kenya, Tanzania, Ghana, Indonesia, and Azerbaijan between 2014 and 2022.
These bribes were disguised as legitimate business expenses, exposing weaknesses in SAP’s internal controls and oversight of subsidiaries.
The penalty includes $85 million in disgorgement and $13.4 million in prejudgment interest, but will be partially offset by SAP’s previous $59 million settlement with South Africa.
The SEC’s order also requires the company to implement stricter anti-bribery and corruption measures.
SAP has admitted its wrongdoing and emphasized its cooperation with authorities. The company claims that those responsible for the bribery left years ago and that its current internal controls and compliance programs are robust. However, the SEC order suggests that further improvements are needed.
This settlement serves as a reminder to companies of the importance of ethical business practices and strong anti-corruption.
