SEC Sues IBM over Alleged South Korea, China Bribes
The Securities and Exchange Commission has sued IBM over alleged bribery of South Korean and Chinese officials. From MarketWatch:
IBM was accused of violating the Foreign Corrupt Practices Act in connection with the alleged payments of cash, travel and entertainment to government officials in the Asian countries from 1998 to 2009, according to the SEC complaint filed Friday.
IBM has agreed to pay penalties and fees, totaling $10 million, as part of a settlement with the SEC.
In a statement, IBM said the company “insists on the highest ethical standards in the conduct of its business and requires all employees to follow its policies and procedures for conducting business.”
According to the complaint, even though Big Blue had policies against corrupt practices, “Deficient internal controls allowed employees of IBM’s subsidiaries and joint venture to use local business partners and travel agencies as conduits for bribes and other improper payments to South Korean and Chinese government officials over long periods of time.”