Cisco Systems and distie Westcon Group North America, owned by South African firm Datatec, are to pay $48m to end an investigation by the US Department of Justice into overcharging.

The multi-million dollar settlement will end an investigation into allegations that the two companies knowingly provided incomplete information during negotiations with the General Services Administration and other agencies.

These actions resulted in "defective pricing of Cisco products", the DoJ said.

Brian D Miller, GSA Inspector General, said: “Overcharging the government results in waste of taxpayer dollars. Our auditors and special agents keep vigilant watch to ensure contractors stay honest.”

The civil settlement also ends a whistleblower case brought in Arkansas in 2004. ®