SAP paid R107m to Gupta-linked firms
US Justice Department has launched a full-scale investigation, it emerges
Global software giant SAP has confirmed paying R107-million to companies it now understands to be linked to the Gupta family and has reported itself to the US Department of Justice.
The company maintains, though, that an internal probe revealed misconduct only by its management.
SAP said it had put in place a policy through which it would stop all “sales commission” payments in countries with a Corruption Perception Index score of less than 50. South Africa has a score of 47.
The company has labelled payments to Gupta companies as “sales commissions” on deals with state-owned companies Eskom and Transnet, worth R660-million.
The Gupta companies in question are CAD House and Global Softech Solutions, entities leaked Gupta e-mails have revealed were controlled by the Gupta family.
In July, media reports revealed the two companies benefited from about R100million in alleged kickbacks for assistance in securing the deals, an allegation SAP has consistently denied.
SAP confirmed yesterday at a press briefing in Johannesburg that the US Justice Department had launched a full-scale investigation following a “voluntary disclosure” by SAP, but would not discuss the scope of the probe, saying it was ongoing.
The company is listed on the New York Stock Exchange and could face penalties under the Corrupt Foreign Practices Act, enforced by the FBI, if criminal wrongdoing is discovered.
Hawks spokesman Brigadier Hangwani Mulaudzi confirmed yesterday that the Hawks were cooperating with the FBI. SAP said it had had no interaction with SA or German authorities to date.
Meanwhile, an internal probe by law firm Baker McKenzie was nearing completion, said the SAP co-president of global customer relations, Adaire Fox-Martin.
“The investigation has unearthed no evidence of any payments to South African government officials, including Eskom and Transnet employees,” he said.
When Sowetan’s sister publication, The Times, pointed out it was never alleged that SAP had directly paid any officials or stateowned enterprises (SOE) staff but had, in fact, brought the Gupta companies on board to secure the deals, Fox-Martin declined to comment further.