IBM has agreed to pay $10 million to settle charges it gave cash and gifts to Chinese and South Korean government officials, according to the US Securities and Exchange Commission (SEC). Under the agreement, which is subject to court approval, IBM does not admit or deny the allegations that it violated the Foreign Corrupt Practices Act.
The agreement, a copy of which was obtained by AFP on Friday, calls for the US computer giant to pay disgorgement of $5.3 million, interest of $2.7 million and a civil penalty of $2 million. In a complaint filed with a US District Court here, the SEC said employees of IBM subsidiaries and a majority-owned joint venture provided cash and improper gifts, travel and entertainment to Chinese and South Korean government officials between 1998 and 2009.
From 1998 to 2003, employees of IBM Korea and joint venture LG IBM PC Co paid $207,000 in cash bribes and gave improper gifts to South Korean government officials to secure the sale of IBM products, the complaint said. It said that from 2004 to 2009, employees of IBM China provided overseas trips, entertainment and improper gifts to Chinese government officials. "The misconduct in China involved several key IBM China employees and more than 100 IBM China employees overall," the complaint said. IBM could not be reached for immediate comment on the proposed settlement.
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