In order to settle the charges against it involving overbilling the U.S government for nine years, enterprise software maker Oracle Corp. has agreed to pay a hefty amount of over $199.5 million as compensation, new reports confirmed.
It all began over a decade back in 1998 when the General Services Administration (GSA) agreed to purchase $1.08 billion worth software from Oracle. It was, however, later alleged that Oracle had made false promises to the GSA in order to bag the contract.
Apparently, according to the lawsuit filed against the company, it had made false promises to the GSA, assuring it of allotting the same discounts it offers to favoured commercial clients.
“Companies that engage in unlawful or fraudulent practices to secure government business undermine the integrity of the procurement process and create an unfair advantage,” Tony West, assistant attorney general of the Justice Department’s civil division, said in a statement, Business Week reports.
Meanwhile, GSA Inspector General Brian Miller expressed his views on these recent developments by saying, “It’s more important now than ever before to make sure that taxpayer dollars are not wasted on higher prices. We will not let contractors victimize the taxpayers by hiding their best prices.”