According to Reuters, SAP signed the agreement with the purpose of reaching a settlement of the civil charges against Vicente Eduardo García, a former SAP executive accused of bribing officials in Panama to obtain a contract for $14.5 million.
The SEC said that poor internal controls in SAP allowed Garcia, who at the time was vice president of Global Strategic Sales for Latin America, to pay $145,000 in bribes to senior Panamanian officials in exchange for contracts with the company.
The agreement obliges SAP to pay $3.7 million in fines and $189,000 in interest, "for having infringed the rules of the federal law that prohibits international corruption.”
SAP officials said that the agreement with the SEC "does not include any criminal prosecution against the company for bribery."
It said the criminal liability in the matter was confined to the “behavior of Garcia," who was sentenced to 22 months in prison in the matter.
SAP officials noted that the United States Department of Justice "declined to bring criminal charges against the company."