ASIATODAY.ID, JAKARTA – The United States (US) Security and Exchange Commission (SEC) revealed allegations of giving bribes by Germany software company SAP to 8 ministries/institutions, State-Owned Enterprises (BUMN) and Regional-Owned Enterprises (BUMD ) ) in Indonesia.
The case is the same as that handled by the US Department of Justice. SAP is said to have given bribes to a number of officials in Indonesia, as well as other countries such as South Africa and Azerbaijan.
Based on SEC documents, SAP, through SAP Indonesia, was involved in illegal payments to officials at 8 state-owned entities in Indonesia to obtain cooperation contracts. They are the Center for Provision and Management of Telecommunications and Information Technology (BP3TI) (now BAKTI Kominfo) and the Ministry of Maritime Affairs and Fisheries. Then, the Ministry of Social Affairs, PT Pertamina (Persero), the Provincial Government of DKI Jakarta, PT Mass Rapid Transjakarta (MRT) Jakarta (Perseroda), PT Angkasa Pura I (Persero) and PT Angkasa Pura II (Persero).
This action was carried out through two account executives at SAP Indonesia, who also collaborated with at least one value add reseller (VAR).
“In several cases, SAP Indonesia and intermediaries in Indonesia used fake proof of payment to make payments in slush funds to provide bribes,” as quoted from US SEC documents, Wednesday, January 17 2024.
The methods used by the parties involved include creating shell companies to carry out fake shopping. Then, the fake invoice generates commission money for intermediaries in Indonesia. Apart from that, the money generated from the fake invoices was used to pay for tourist trips and provide cash to officials in Indonesia.
In detail, bribes to BP3TI or BAKTI Kominfo were given by SAP Indonesia through intermediaries in the form of money transfers of around $67,380 million. Several other gifts include shopping for a tour and dinner for a BP3TI official and his wife in June 2018 to New York, USA. This trip was also to attend the SAP Sapphire Conference in Florida 2018. The bribe was given by SAP Indonesia to BP3TI or BAKTI in connection with a procurement contract worth $268,135 million.
Then, bribes to the Ministry of Maritime Affairs and Fisheries took the form of cash to obtain contracts worth $80,750 million. The money planned to be given to officials from the Ministry of Maritime Affairs and Fisheries is worth 70 million rupiah in 50 thousand rupiah denominations.
Furthermore, SAP Indonesia is also said to have planned to give bribes related to the Applicant Tracking Software (ATS) maintenance tender by the Ministry of Social Affairs. Then, bribes from SAP Indonesia to Pertamina were given to officials at the BUMN in the form of golf facilities. The bribe was given to obtain a contract dated January 23, 2017 related to license maintenance services worth up to $13.3 million.
Several other awards from SAP Indonesia include the DKI Jakarta Regional Government in 2018 to obtain a contract worth $208,198 million; contract with MRT Jakarta worth $174,908 million; contract with Angkasa Pura I worth $1.09 million; and two contracts with Angkasa Pura II worth $2.53 million and $2.59 million respectively.
Due to this bribery practice, SAP could be charged with a layered market under the Exchange Act or statutory regulations regarding capital markets. The SEC said SAP could be charged with a fine of around $98.45 million.
KPK Collaborates with FBI
The Indonesian Corruption Eradication Commission (KPK) has coordinated with the SEC and the Federal Bureau of Investigation (FBI) which is handling the cross-border bribery scandal.
According to Deputy Chairman of the Corruption Eradication Commission, Alexander Marwata, so far his party is still in the stage of gathering information regarding the case involving the software company.
For your information, the cross-border bribery case is being handled by the US Department of Justice, which oversees the Attorney General’s Office and the FBI, as well as the stock exchange authority or SEC.
SAP was sued and has agreed to pay fines and penalties of more than $220 million to the US Department of Justice. (AT Network)
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