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Technology / Software / Electronics
Redwood City, California, United States
Nationality of Foreign Officials: India, Turkey, United Arab Emirates
Summary of Allegations:
It is alleged that subsidiaries of Oracle Corporation in Turkey, United Arab Emirates and India created and used slush funds to bribe foreign officials in return for business between 2016 and 2019.
According to the Securities and Exchange Commission, the company's subsidiaries in Turkey and UAE also used the slush funds to pay for the attendance of foreign officials to technology conferences and in some cases the funds were used for the official's families to accompany them to the international conferences.
The SEC also alleges that in 2019, Oracle India sales employees used an excessive discount scheme with a transaction with a transportation company that is majority owned by the Indian Ministry of Railways. A total of approximately $330,000 was funneled to an entity with a reputation for paying SOE officials and another $62,000 was paid to an entity controlled by the sales employees responsible for the transaction.
Approximate Alleged Payments to Foreign Officials:
Business Advantage Allegedly Obtained:
Agencies: India: Ministry of Railways
Results:
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:
On 9 October 2022, it was reported that the Ministry of Railways has initiated a probe towards Oracle as a result of the fine by the United States Securities & Exchange Commission for alleged bribery payments to railway officers.
Agencies: United States: Securities and Exchange Commission
Results: Cease-and-Desist Order, Civil Penalty, Disgorgement, Settlement
Year Resolved:
Compliance Monitor:
Ongoing: No
Details:
On 27 September 2022, the Securities and Exchange Commission announced that it has reached a settlement with Oracle Corporation to pay more than USD 23 million to resolve charges that it violated provisions of the Foreign Corrupt Practices Act (FCPA) when subsidiaries in Turkey, the United Arab Emirates (UAE), and India created and used slush funds to bribe foreign officials in return for business between 2016 and 2019. Without admitting or denying the SEC'S findings, Oracle agreed to cease and desist from committing violations of the anti-bribery, books and records, and internal accounting controls provisions of the FCPA and to pay approximately USD 8 million in disgorgement and a USD 15 million penalty.
In August 2012, Oracle agreed to pay a civil penalty of USD 2 million to settle charges related to slush funds in India. See Compendium entry: https://www.traceinternational.org/TraceCompendium/Detail/365?type=1