In 2016 SAP (a German software company with American Depository Shares registered with the SEC) resolved a $3.9 million Foreign Corrupt Practices Act enforcement action.
As stated by the SEC, the matter concerned violations of the books and records and internal controls provisions of the FCPA “due to deficient internal controls, which allowed SAP’s former Vice-President of Global and Strategic Accounts, Vicente E. Garcia, to discount the software price to a former SAP local partner at a level sufficient to permit Garcia and the local partner to pay $145,000 in bribes to one senior Panamanian government official, and offer bribes to two others.”
As highlighted here, in 2019 the company disclosed additional FCPA scrutiny and stated: “SAP has received communications and whistleblower information alleging conduct that may violate anti-bribery laws in South Africa, the United States (including the U.S. Foreign Corrupt Practices Act (FCPA)), and other countries.”
In this recent filing, SAP disclosed:
“SAP received communications alleging conduct that may violate anti-bribery laws in the United States (including the U.S. Foreign Corrupt Practices Act (FCPA)) and other countries. Most of the investigations are ongoing and neither the final outcome of the investigations nor the date when substantiated definitive findings will be available is predictable at this point in time. There could be an unfavorable outcome in one or more of the ongoing investigations. Management’s current best estimate of possible outcome and financial effect is determined by reasonable judgement based on multiple factors.
As a consequence, as at June 30, 2023, provisions for potential regulatory compliance matters totaling €170 million … have been recognized in our Consolidated Half-Year Financial Statements.”
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