Software probes Gupta kickbacks

GERMAN company Software said yesterday it was mounting an internal probe after a media report alleged it had paid kickbacks as part of a wide-ranging South Africa government bribery scheme that has ensnared fellow software-maker SAP.

“Software is not aware of any non-compliant business practices in its South Africa operations,” a company spokesperson told Reuters. But he added: “Based on current media speculations, the company has started an internal review.” The spokesperson said Software could not comment further until its review had been completed.

Contracts

The report, published yesterday by the Amabhungane and the Daily Maverick’s Scorpio investigative reporting teams, alleges that Software entered into an kickback deal with a politically connected South Africa family to win contracts.

It said Software agreed to pay an intermediary company linked to the Gupta family, who are close allies of President Jacob Zuma, in order to win deals with state-controlled companies or agencies or private firms.

Earlier this month, SAP named a new executive team in South Africa after it put four senior managers on leave, pending its investigations into allegations that it was involved in making kickbacks to win government contracts.