13 July 2017

South Africa: #GuptaLeaks - SAP Execs Suspended As Probe Launched Into Gupta Kickbacks

analysis

Members of the South African management team of German software group SAP have been placed on "administrative leave" and a senior board member is en route to the country to launch an investigation into several contracts awarded by SAP South Africa. By JILLIAN GREEN.

The suspension follows revelations contained in the GuptaLeaks emails that show that in order to clinch Transnet business, SAP agreed to pay 10% "sales commission" to a company controlled by the Guptas.

On Monday, AmaBhungane and Scorpio revealed that in August 2015, SAP signed a "sales commission agreement" with a small Gupta-controlled company that specialises in selling 3D printers.

The terms suggest a thinly disguised kickback arrangement: If the Gupta company was the "effective cause" of SAP landing a Transnet contract worth R100-million or more, it would get 10%.

In the year to follow, SAP paid the company, CAD House, a whopping R99.9-million, suggesting SAP used the Gupta influence network to drive sales of a billion rand to Transnet and other state-owned companies.

It was further revealed through the leaked emails that confidential SAP contracts were forwarded to the Guptas.

SAP South Africa denied it paid kickbacks or was party to laundering the payments, arguing that...

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