It is the second case of bribery allegations in India in a decade. The US Securities and Exchange Commission has fined the technology firm Oracle corporation about $23 million as charges as it violates the provisions of the Foreign Corrupt Practices act as its subsidiaries in Turkey, India, and UAE. They created and used slush funds to bribe foreign officials for business purposes between 2016 and 2019.
Order of SEC:
Oracle India sales employees used an excessive discount scheme in connection with a transaction with a transportation company. And the majority of that was owned by the Indian ministry of railways. In January 2019 the ales employees working on the deal claimed the deal would be lost without a 70% discount on the software component of the deal and cited intense competition from other original equipment manufacturers.
The report said oracle needed a France-based employee to approve the request because of the size of the discount. The employee approves the discount without asking the further documentary support. The Indian SOE publicly available procurement website indicated Oracle India has no competition. But it had mandated the use of Oracle products for the project.
One sales employee involved in the transaction maintain a spreadsheet that show $67000 was the buffer available to potential to make payment to a specific Indian SOE official
FAQ
- What is the charge imposed on the oracle?
Ans. $23 million
- What is the full form of FCPA?
Ans. Foreign Corrupt Practices Act
- What was the duration of the bribe?
Ans. 2016 to 2019