Transnet relief over no Guptas

Freight logistics group Transnet said yesterday it felt exonerated from wrongdoing by the voluntary disclosure that business software giant SAP made about allegations of paying a bribe to a Gupta-linked company to secure a lucrative contract with stateowned enterprises (SOEs).

This comes after SAP said it had voluntarily disclosed its breach of the US Foreign Corrupt Practices Act in relation to allegations its South African operation paid kickbacks to a Gupta-linked company and had initiated disciplinary procedures against three employees.

SAP said the allegations of wrongdoing in its South African business have had a profound impact on its employees, customers and partners, and on the South African public, and the group apologised “wholeheartedly” for this.

An independent investigation by law firm Baker McKenzie found no evidence of a payment to a South African government official, including Transnet and Eskom employees, but uncovered indications of misconduct in issues relating to the management of Gupta-related third parties.

The investigation found that SAP provided software and received revenue totalling approximately R660 million‚ and paid commissions to entities currently understood to be Guptarelated, totalling approximately R107 million.

Transnet spokesperson Molatwane Likhethe said in a statement the company noted and welcomed SAP’s update on the ongoing investigation into its South Africa business.

“The update has preliminarily absolved Transnet of wrongdoing. According to the SAP statement, investigations into Gupta-related third parties payments has not revealed any evidence of payment to any Transnet employees,” Likhethe said.

“The payments were as result of commission agreements between SAP and its suppliers. Transnet feels a sense of relief and encouragement on behalf of its over 60 000 employees who work hard to make sure that the goods chain keep on moving.”