ASIATODAY.ID, JAKARTA – The United States Department of Justice released information that Germany software company SAP SE violated the Foreign Corrupt Practices Act (FCPA) and was asked to pay $220 million to resolve a bribery case investigation.
Despite agreeing to the payment, SAP is suspected of being involved in a scheme to bribe Indonesian officials to obtain business benefits and document processing with a number of institutions in Indonesia, although further details are not yet available.
“Postal inspectors, along with law enforcement partners the FBI and Department of Justice prosecutors, followed a widespread trail of bribery and corruption from South Africa to Indonesia. “This joint effort resulted in the defendant company paying a significant criminal penalty and agreeing to long-term remedial action,” said a statement from the US Department of Justice, quoted Friday, January 12, 2024.
SAP claims to be ready to resolve investigations conducted by the United States Department of Justice and the Securities and Exchange Commission (SEC) into violations of the Foreign Corrupt Practices Act (FCPA).
Acting Assistant Attorney General of the U.S. Department of Justice’s Criminal Division Nicole M. Argentieri said that SAP’s resolution with the department stemmed from a scheme to provide bribes to government officials in South Africa and Indonesia. The department’s resolution is coordinated with the prosecutorial authorities in South Africa, as well as the SEC.
According to court documents, SAP entered into a 3-year deferred prosecution agreement (DPA) with the department in connection with a criminal information filed in the Eastern District of Virginia charging the company with two counts: conspiracy to violate anti-bribery and bookkeeping.
Then, note the provisions of the FCPA relating to a scheme to pay bribes to officials in South Africa and a conspiracy to violate the anti-bribery provisions of the FCPA in a scheme to pay bribes to Indonesian officials.
“SAP gave bribes to officials at state-owned enterprises in South Africa and Indonesia to obtain valuable government business,” said Nicole, quoted Friday, January 12 2024.
According to court documents, SAP and its co-conspirators paid bribes and provided other things of value intended for the benefit of foreign officials in South Africa and Indonesia, providing money in the form of cash payments, political donations, and electronic transfers, along with goods a luxury purchased during a shopping trip.
Specifically, with respect to South Africa, between approximately 2013—2017, SAP, through certain agents, engaged in a scheme to bribe South African officials and falsify SAP’s books, records, and accounts, all for the purpose of obtaining an improper advantage.
Additionally, between approximately 2015—2018, SAP, through certain agents, engaged in a scheme to bribe Indonesian officials to obtain improper business advantages for SAP in connection with various contracts between SAP and departments, agencies and institutions in Indonesia. Including the Ministry of Maritime Affairs and Fisheries and the Provider Center and the Telecommunications and Information Accessibility Agency (BAKTI).
Under the DPA, SAP will pay a criminal fine of $118.8 million and administrative forfeiture of $103,396,765. SAP will also continue to cooperate with the department in any ongoing or future criminal investigations that arise during the term of the DPA.
Additionally, the department will credit a criminal fine of up to $55.1 million against the amount SAP paid to resolve an investigation by law enforcement authorities in South Africa into related actions. The Department will credit up to the full forfeiture amount against disbursements paid by SAP to the SEC or South African authorities.
Pursuant to Part I of the March 2023 Criminal Division Compensation and Clawback Incentive Pilot Program, SAP’s compliance obligations include a commitment to implement compliance-related criteria in the company’s compensation and bonus systems, subject to local employment laws.
Under Part II of the Pilot Program, the department reduced criminal penalties by $109,141 for compensation that SAP withheld from eligible employees, which action the company defended in substantial litigation.
KPK Moves Immediately
Meanwhile, the Indonesian Corruption Eradication Commission (KPK) is still investigating this information.
Deputy Chairman of the Corruption Eradication Committee, Nurul Ghufron, said that his party had just received the information and would soon provide details regarding the sources of the existing information.
“Because we are also committed to institutions and law enforcement globally, of course we will first investigate the source of this information, then in more detail we will examine who it is,” said Nurul in his statement, Friday, January 12 2024.
He added, if there is a decision from the court with authority on the case, then the KPK can take action. This is related to the authority of the Corruption Eradication Committee (KPK) in handling cases of corruption and bribery within Indonesia itself.
“If there is a decision that the German side has committed corruption against companies and officials, one of whom is an Indonesian official, of course that is part of the Corruption Eradication Commission’s authority to follow up. “Later we will look into it first,” he concluded. (AT Network)
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