Individual Pleads Guilty To FCPA Charge In Connection With Bribery Scheme Involving South African Airways
In 2016, AAR Corp. (a U.S. based aviation services company) announced that it had teamed with a joint venture partner – JM Aviation South Africa (Pty) Ltd. – to secure a five year contract to provide inventory management and repair services to South Africa Airways Technical (SAAT) Ltd. (a wholly-owned subsidiary of South African Airways – SAA).
Recently, the DOJ charged Julian Aires (a U.S. citizen who resided in San Diego and associated with JM Aviation South Africa) with conspiracy to violate the FCPA’s anti-bribery provisions in connection with an SAAT contract as well as another contract involving Swissport (an airport ground services and air cargo handling company) and SAA.
According to the court docket, Aires has pleaded guilty.
SAP Joins The Repeat Offender Club
In 2016 SAP (a German software company with American Depository Shares registered with the SEC) resolved a $3.9 million Foreign Corrupt Practices Act enforcement action.
As highlighted here, in 2019 the company disclosed additional FCPA scrutiny and stated: “SAP has received communications and whistleblower information alleging conduct that may violate anti-bribery laws in South Africa, the United States (including the U.S. Foreign Corrupt Practices Act (FCPA)), and other countries.”
Yesterday, SAP joined the ever-growing FCPA repeat offender club as the DOJ and SEC announced (here and here) related FCPA enforcement actions against the company. The net FCPA settlement amount is $102.5 million: DOJ ($63.6 million) and SEC ($38.9 million).
Gartner Resolves $2.5 Million Enforcement Action
Late last Friday afternoon on a holiday weekend, the SEC released one of the more pedestrian FCPA enforcement actions of recent memory.
The action involved Gartner Inc. (a technological research and consulting company) concerning conduct in 2014 and 2015 in South Africa.
To resolve the matter, Gartner agreed to pay approximately $2.5 million (856,764 in disgorgement and prejudgment interest and a $1.6 million civil penalty).
In summary fashion, this administrative order states:
ABB Becomes The First Company To Resolve THREE FCPA Enforcement Actions
The first time ABB resolved a Foreign Corrupt Practices Act enforcement action was in 2004 concerning conduct in Nigeria, Angola and Kazakhstan.
The second time ABB resolved an FCPA enforcement action was in 2010 concerning conduct in Mexico as well as in connection with the Iraqi U.N. Oil for Food program.
Since 2017 (see here for the prior post), ABB has been under additional FCPA scrutiny and last Friday ABB became the first company to resolve an FCPA enforcement action for a third time. The latest enforcement action concerned conduct in South Africa and the net FCPA settlement amount was $147.5 million (a DOJ component of net $72.5 million and an SEC component of net $75 million).
Fresh Off Its 2016 FCPA Enforcement Action, SAP Is Again Under FCPA Scrutiny
As highlighted in this previous post, in February 2016 SAP (a German company with American Depository Shares registered with the SEC) resolved an FCPA enforcement action based on conduct in Panama. Without admitting or denying the SEC’s finding’s in an administrative order the company agreed to pay approximately $3.9 million and the SEC ordered the company to cease and desist from committing or causing any violations and any future violations of the FCPA’s books and records and internal controls case.
Fresh off this 2016 FCPA enforcement action, SAP is again under FCPA scrutiny.