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Oracle used bribe funds to bribe officials in India, the United Arab Emirates and Turkey.
The U.S. Securities and Exchange Commission (SEC) said employees at Oracle India used an excessive discounting scheme related to a deal with a transportation company owned by the Ministry of Railways.
The U.S. Securities and Exchange Commission (SEC) fined tech giant Oracle more than $23 million for violating the Foreign Corrupt Practices Act (FCPA). Oracle used bribe funds to bribe officials in India, the United Arab Emirates and Turkey in exchange for business between 2016 and 2019. SFC.
“The creation of off-book slush funds inherently creates a risk of these funds being misused, which is what happened at Oracle’s Turkish, UAE and Indian subsidiaries. This incident highlights the need for effective internal accounting controls throughout the company’s operations. urgent need,” said Charles Cain, head of the SEC’s FCPA division.
Oracle has agreed to pay $8 million in disgorgement, and the remaining $15 million is a fine of $23 million, according to the SEC. Although it did not admit or deny wrongdoing in agreeing to the settlement.
“The conduct outlined by the SEC violates our core values and clear policies, and if we become aware of such conduct, we will take appropriate action,” Oracle spokesman Michael Egbert told the news agency Reuters.
According to the SEC, employees of Oracle’s India unit used an excessive discounting scheme related to a deal with a transportation company owned by the Ministry of Railways. The market watchdog added that the employees offered deep discounts of 70 per cent on software deals to deter rivals.
This SFC No competition was found, as the procurement website of the Indian Ministry of Railways clearly states that the project uses Oracle products. According to the SEC order, an employee involved in the deal kept a spreadsheet showing a buffer of $67,000 available for payments to Indian officials at state-owned enterprises (SOEs).
“A total of approximately $330,000 went to an entity known for paying state-owned enterprise officials, and another $62,000 went to an entity controlled by the salesperson in charge of the transaction,” the order said.
This is the second time Oracle has been accused by the SEC of bribing officials in India.
In 2012, Oracle’s Indian arm was found guilty of keeping unauthorized affiliate funds with distributors between 2005 and 2007. Oracle has agreed to pay $2 million to settle SEC charges of violating the terms of the FCPA.
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