Oracle Fined $23 Mn To Resolve Bribery Case

The US Securities and Exchange Commission (SEC) has fined Oracle USD 23 million to resolve charges it violated under provisions of the Foreign Corrupt Practices Act (FCPA) with its subsidiaries in India, UAE and Turkey. 

The company has been charged for using slush funds to bribe foreign officials in return for business between 2016 and 2019.

“In 2019, Oracle India sales employees also used an excessive discount scheme in connection with a transaction with a transportation company, a majority of which was owned by the Indian Ministry of Railways,” the SEC order said.

According to the SEC’s order, Oracle subsidiaries in Turkey and UAE also used the slush funds to pay for foreign officials to attend technology conferences in violation of Oracle policies and procedures. 

The order found that in some instances, employees of the Turkey subsidiary used these funds for the officials’ families to accompany them on international conferences or take side trips to California.

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.

The SEC had previously sanctioned Oracle in connection with the creation of slush funds. In 2012, Oracle resolved charges relating to the creation of millions of dollars of side funds by Oracle India, which created the risk that those funds could be used for illicit purposes.