Microsoft paysUS SEC USD 25 million to settle corruon charges

NEW YORK: Microsoft is paying more than USD 25 million to settle federal corruon charges involving a bribery scheme in its Hungary office and three other foreign subsidiaries.

The US Securities and Exchange Commission says Microsoft will pay about USD 16.6 million to settle charges that it violated the Foreign Corrupt Practices Act involving its operations in Hungary, Saudi Arabia, Thailand and Turkey.

The Justice Department says Microsoft will also pay a USD 8.75 million criminal fine stemming from the Hungarian bid-rigging and bribery scheme, which involved Microsoft licenses sold to government agencies and falsely recorded as discounts.

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

Smith is also outlining changes the company plans to make to prevent discounts from being used for improper purposes.