Oracle bribery case settled. The United States Securities and Exchange Commission announced on Tuesday that Oracle Corp. will pay nearly $23 million to settle allegations that its subsidiaries in Turkey, the United Arab Emirates, and India used slush funds to bribe foreign authorities to obtain contracts.
“The Securities and Exchange Commission announced settled charges requiring Oracle Corporation to pay more than $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.”
SEC
Oracle bribery case: Oracle will pay nearly $23 million
According to the SEC, Oracle constructed slush funds used to bribe foreign authorities between 2016 and 2019 through its companies in India, Turkey, and the United Arab Emirates. According to the order, executives of the Turkey subsidiary occasionally utilized this cash to pay for the officials’ families to go to California or accompany them on side excursions to international conferences.
This is the second time Oracle has been fined. Oracle was previously penalized by the SEC for the establishment of slush funds. A case against Oracle involved the creation of side funds worth millions of dollars by Oracle India, which raised the possibility that the funds would be utilized for illegal activities. To resolve SEC accusations related to Oracle India’s formation of millions of dollars in unlicensed side funds from 2005 to 2007, Oracle agreed to pay a $2 million fine in 2012.
Oracle will pay more than $23 million to resolve the allegations, although it made no admissions or denials regarding the SEC’s allegations.
“The creation of off-book slush funds inherently gives rise to the risk those funds will be used improperly, which is exactly what happened here at Oracle’s Turkey, UAE, and India subsidiaries.”
Charles Cain, the SEC’s FCPA unit chief
David Reece oversaw the SEC inquiry by Samantha Martin and Laura Bennett. SEC appreciated the assistance of the Capital Markets Board of Turkey, Emirates Securities and Commodities Authority, and the Securities and Exchange Board of India in the official press release.
