26 October 2017

South Africa: SAP Takes Disciplinary Action, Calls in U.S. Authorities, Amid #GuptaLeaks Corruption Revelations

Photo: allafrica.com
Top: SAP headquarters in Walldorf, Germany. Bottom-left: Atul Gupta. Bottom-right: FBI badge and gun.
analysis

Revelations contained in the #GuptaLeaks emails revealed that giant German software group SAP agreed to pay 10% "sales commission" to a company controlled by the Guptas in order to clinch Transnet business. In a statement issued today, SAP said it has disclosed the situation about its South Africa businesses to United States authorities. It has also initiated disciplinary procedures against three employees and has removed commission on public sector deals in higher-risk countries, including South Africa. Here is the full SAP statement:

SAP SE has voluntarily disclosed the situation in its South Africa business to US authorities responsible for enforcing the US Foreign Corrupt Practices Act. It has initiated disciplinary procedures against three employees and made significant changes to its global sales deal processes.

"As a global company with a commitment to integrity and compliance, the past three months have been humbling for us," said Adaire Fox-Martin, member of the Executive Board of SAP SE, who leads SAP's business in Middle and Eastern Europe (MEE), Europe, the Middle East, and Africa (EMEA), and Greater China. "The allegations of wrongdoing in our South African business have had a profound impact on our employees, customers and partners, and on the South African...

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