When bribery and corruptions have spread all over the world in such avast rate; it was reported on Friday that the Mumbai Cognizant Technology Solutions Corporation charged for about $25 million (178crores). The reason for such a charge is to settle the issue of crime for violating certain terms of the Foreign Corrupt Practices Act (FCPA) in the Securities and Exchange Commission Act.
Reason for such an act???
Previously, The Securities and Exchange Commission charged two of the former executives of Mumbai Cognizant Technology Solutions Corporation. The charge then was triying to settle the roles of the in facilitating payments of the employees by bribing the Indian Government official.
Further reports Regarding Mumbai Cognizant’s Crime
In the year 2014, SEC alleged one of the senior Government officials of the Tamil Nadu Government; as a complaint about bribing $2 million for the construction of a building monitored by Cognizant. Gordon Coburn, President of Cognizant and Steven E. Schwartz, the Chief Legal Officer openly revealed their authorization in bribing the company for settling the issues.
The Department of Justice and the U.S. Attorney’s Office for the District of New Jersey confirmed the SEC’s bribery charge; where the Cognizant has agreed to pay $25 million for settlement of the issues; related to the violation of the terms and conditions of the Foreign Corrupt Practices Act (FCPA) as per the Securities and Stock Exchange Act. This is not the first time that Cognizant is settling certain issues through bribes.
It’s not only Mumbai Cognizant | Cognizant has been settling issues since long!
Even in 2015 Cognizant had settled another construction issue by bribing an amount of $7 million to the Government of Chennai. Such unlawful payments have been reported which were paid through the bank accounts of Cognizant’s consolidated records and accounts. There is again a question of whether Cognizant has failed to maintain their sufficient account documentation or not.