According to the U.S. Securities and Exchange Commission (SEC), employees at Oracle’s India division used excessive discount schemes related to deals with a transportation company owned by the Ministry of Railways.
The U.S. Securities and Exchange Commission (SEC) has fined tech giant Oracle more than $23 million for violating the Foreign Corrupt Practices Act (FCPA). From 2016 to 2019, Oracle used slush funds to bribe officials in India, the United Arab Emirates, and Turkey, and used them in return for business. SEC.
“Creating secret funds off the books inherently creates a risk that those funds will be used inappropriately. This issue highlights the critical need for effective internal accounting controls across a company’s operations,” said Charles Cain, SEC’s FCPA Unit Chief.
According to the SEC, Oracle agreed to pay $8 million in degorgement, with the remaining $15 million in penalties out of a total of $23 million. It neither admitted nor denied any wrongdoing in agreeing to the settlement.
“The conduct outlined by the SEC violates our core values and clear policies, and when we identify such conduct, we take appropriate action,” Oracle spokesman Michael Egbert said. increase. told news agency Reuters.
According to the SEC, employees at Oracle’s India division used excessive discount schemes related to dealings with a transportation company owned by the Ministry of Railways. Employees offered a steep 70% discount on software deals to keep competitors away, the market watchdog added.
of SEC found that there was no competition because the procurement website of the Indian Ministry of Railways explicitly mandated the use of Oracle products for the project. According to the SEC order, one of her employees involved in the transaction created a spreadsheet showing that he had a $67,000 buffer available to make payments to Indian officials at a state-owned enterprise (SOE). was holding
“A total of approximately $330,000 was channeled into reputable entities by making payments to SOE officials, and another $62,000 was paid out to entities controlled by sales representatives responsible for transactions,” the order said. I’m here.
This is the second time Oracle has been indicted by the SEC for bribing an Indian public official.
In 2012, Oracle’s India division was found guilty of storing unauthorized side funds with distributors from 2005 to 2007. Oracle had agreed to pay him $2 million to settle SEC charges that he violated the FCPA terms.