Oracle will pay about $23 million (nearly Rs. 190 crore) to resolve charges that its offices in Turkey, the United Arab Emirates, and India used slush funds to bribe foreign officials in order to succeed, according to the US Securities and Exchange Commission.
The trial included alleged fraud from 2014 to 2019, and the SEC is the second time notified Oracle of using the Federal Foreign Corrupt Practices Act (FCPA), an anti-bribery law.
In violation of Oracle''s policies, Oracle''s Turkey and UAE offices used slush funds to pay for foreign officials to assist in technology conferences.
Employees of the Turkish division used the funds to pay for their spouses and children to accompany them or travel to Los Angeles and Napa Valley, California, according to the Securities and Exchange Commission.
"The creation of off-book slush funds is of course putting the risk that these funds will be improperly used, according to Charles Cain, the head of the SEC''s FCPA division.
Oracle, based in Austin, Texas, agreed to pay a $15 million civil fine and about $7.9 million in disgorgement and interest. It did not admit or deny wrongdoing in agreeing to settle.
"The conduct described by the Securities and Exchange Commission is contrary to our fundamental values and clear policies, and if we identify such behavior, we will take appropriate action," said Oracle''s spokesperson.
Oracle India appoints a $2 million (nearly Rs. 16 crore) fine to settle SEC charges related to the creation of million dollars of unauthorised side funds from 2005 through 2007.