Deloitte, SAP Face Charges of Bribery

Lucas Gilmore, “Big 4″ observer
December 22, 2010 /

Marin County has charged Deloitte Consulting LLP and SAP for allegedly engaging into bribery with former assistant auditor-controller Ernest Culver that cost the county more than $20 million for a “deficient work” on a public sector software.

The county’s bribery suit claimed that Deloitte and two subsidiaries of SAP had repeatedly treated Culver, who currently works as a client services executive at SAP, on extravagant meals and offered him position at the company, allegedly to get him approve the deficient work on a software project for the public sector, including payments.

Deloitte lacked the necessary skills to implement the project with SAP, but concealed it in a misrepresented statement while SAP remained silent about it, the county claimed.

The complaint said that when Deloitte’s project was proven to have been implemented out of lack of the necessary skills, the firms involved engaged in bribery with Culver to cover-up the deficient work. The two firms also attempted to silence one SAP employee who was about to make interventions with the problem.

According to the complaint, Deloitte and the two subsidiaries of SAP violated the Federal Racketeering Influenced and Corrupt Organizations Act with six counts of charges and three counts against Culver for violating the anti-corruption law of California.

Judy Arnold, president of the Marin County Board of Supervisors, said they were not aware that SAP and Deloitte had connections with a county employee to carry out such act of bribery.

Deloitte and SAP will face financial penalty of $35 million for the bribery plus punitive damages.

Mark Ressler, the county’s lead lawyer, said their camp will present their case forward to gain redress for Marin County that has fallen prey to bribery.

 

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