Mon | Nov 23, 2020

Microsoft pays $25 million to settle corruption charges

Published:Tuesday | July 23, 2019 | 9:07 AM
In this May 7, 2018, file photo Microsoft CEO Satya Nadella looks on during a video as he delivers the keynote address at Build, the company's annual conference for software developers in Seattle. (AP Photo/Elaine Thompson, File)

NEW YORK (AP) — Microsoft is paying more than $25 million to settle federal corruption charges involving a bribery scheme in Hungary and other foreign offices.

The U.S. Securities and Exchange Commission said Microsoft will pay about $16.6 million to settle charges that it violated the Foreign Corrupt Practices Act.

While the case centred on Hungary, the commission said it also found improprieties at Microsoft offices in Saudi Arabia, Thailand and Turkey.

The Justice Department said Microsoft will also pay an $8.75 million criminal fine stemming from the Hungarian bid-rigging and bribery scheme.

Federal prosecutors said that from 2013 through 2015, a senior executive and other employees at the Hungary office took part in a scheme to “inflate margins in the Microsoft sales channel” in connection with Microsoft software licenses sold to Hungarian government agencies.

Savings were falsely recorded as discounts and used for corrupt purposes, the prosecutors said.

Microsoft President Brad Smith said in a letter to employees Monday that the misconduct was “completely unacceptable” and involved a small number of employees.

We want to hear from you! Send us a message on WhatsApp at 1-876-499-0169, email us at editors@gleanerjm.com or onlinefeedback@gleanerjm.com.