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The United States recently slapped a USD 222 million fine on the German software company SAP on the grounds of bribery. The company was alleged to have attempted to bribe government officials from several African countries. The bribes were said to come in the form of cash, political donations, luxury goods, and shopping sprees.
SAP was fined for a decade-long bribery scheme involving cash, gifts, and political donations to secure government officials globally. SAP reached a three-year agreement with the US Department of Justice, settling charges related to bribery and corruption in South Africa, Tanzania, and others. The US Postal Inspection Service and FBI continue to probe SAP’s global bribery scandal.
The court documents show that SAP made a three-year deferred prosecution agreement (DPA) with the department concerning a criminal complaint that was filed in the Eastern District of Virginia and accused the organization on two counts of “conspiracy to violate the anti-bribery and books and records provisions of the FCPA relating to its scheme to pay bribes to South African officials, and conspiracy to violate the anti-bribery provision of the FCPA for its scheme to pay bribes to Indonesian officials.
The Scheme dates back to 2014 and is said to have run for almost a decade, as it came to a halt in 2022. The Department of Justice noted that the scheme involved several African countries, numbering around 5, including South Africa, and Tanzania.
SAP paid bribes to officials at state-owned enterprises in South Africa and Indonesia to obtain valuable government business. The US Justice Department’s second coordinated resolution with South African authorities in just over a year, marks an important moment in its ongoing fight against foreign bribery and corruption. The US government looks forward to continuing to strengthen its relationship with South African authorities and others around the world, stated Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division.
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The Tanzanian news publication, ‘The Citizen’ also noted that the German company had offered bribes to top Tanzanian officials to win tenders. SAP is linked to offering bribes to top officials at the Tanznaia Port Authorities (TPA) in 2014/2015, to win the tender and is alleged to have colluded with TPA insiders to get preferential treatment on other multiple government deals that were meant for competitive bidding, Citizen’s report read in part.
