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Uber Disclosed An Investigation into Improper Payments

2019-05-08 17:04 Wednesday

On April 11, 2019, Uber Technologies Inc. disclosed an investigation into allegations of improper payments in Indonesia and three other countries.

Uber Disclosed An Investigation into Improper Payments

In 2017, the ride-sharing company said in a regulatory filing that it had received a request from the United States Department of Justice to investigate allegations of bribery by Indonesian police and possible improper payments in other countries, including Malaysia, China and India.

Details of the investigation were revealed in documents, which also announced the company's intention to go public. An Uber spokesman declined to comment beyond the regulatory filing.

In 2017, The Department of Justice took preliminary steps to investigate whether Uber executives violated the Foreign Corrupt Practices Act, The Wall Street Journal reported, citing people familiar with the investigation.

In its filing, Uber said it was cooperating with prosecutors investigating the case. "If we are found to have violated the Foreign Corrupt Practices Act or similar laws, we may be subject to criminal sanctions and other liabilities that will adversely affect our business, financial position and results of operations," the company said.

The investigation shows that Uber is facing many challenges as it seeks to expand its global influence and find new ways of doing business. Uber operates in 63 countries, some of which have high levels of corruption.

The company also said the planned acquisition of Dubai-based Careem Networks FZ could increase the risk of corruption in Uber because Careem employees, business partners or users may not be familiar with or comply with certain anti-corruption laws.

Uber said it planned to conduct "significant training" on anti-corruption laws for Careem employees, consultants and partners after the acquisition. The company also said it may have to change its compliance training to include procedures for monitoring financial transactions and verifying users.

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