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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Foreign Corrupt Practices Act Violations in Hungary, Saudi Arabia, Thailand, and Turkey

Microsoft paid more than $16.5 million to settle charges that it violated the Foreign Corrupt Practices Act in connection with its operations in four countries. According to the SEC, Microsoft’s subsidiary in Hungary provided discounts on software licenses to its resellers, distributors, and other third parties and used the discounts to fund improper payments to foreign government officials to secure software license sales. The SEC also found that Microsoft’s subsidiaries in Saudi Arabia and Thailand provided improper travel and gifts to both foreign government officials and employees of non-government customers funded through slush funds maintained by Microsoft’s vendors and resellers. The SEC further found that Microsoft’s subsidiary in Turkey provided an excessive discount to an unauthorized third party in a licensing transaction for which Microsoft’s records did not reflect any services provided.

Misconduct Type
Ethics
Enforcement Agency
SEC
Contracting Party
None
Court Type
Administrative
Disposition
Settlement
Date of SEC Order
7/22/2019
Contractors Involved Penalty
Total
Microsoft Corporation $16,565,151
Further Information Released
SEC Order 7/22/2019
SEC Press Release 7/22/2019

See also:

Federal Contractor Misconduct Database