SAP SUSPENDS TEAM OVER ALLEGED GUPTA KICKBACKS
SOFTWARE multinational firm SAP has suspended South Africa’s management team after a #GuptaLeaks exposé by Ama Bhungane and Scorpio revealed it allegedly paid a Gupta front R100 million in kickbacks for state business.
SAP has initiated an independent external investigation as well as an internal probe into the matter. The current management team has been placed on leave pending the findings of the review, SAP said in a statement on Wednesday.
SAP didn’t name the individuals, but Fin24 understands they include Brett Parker (MD Africa), Lawrence Kandaswami (MD in SA), Deena Pillay (CFO South Africa) and Mehmood Khan (COO Africa).
“SAP has initiated an independent investigation spearheaded by a multinational law firm and overseen by executive board member Adaire FoxMartin to vigorously review contracts awarded by SAP South Africa,” the firm said.
“SAP has also launched an internal review as part of its utmost commitment to compliance and will make the results of the investigation public once it is concluded.
“As a company we’re initiating a very thorough and very vigorous investigation,” FoxMartin told Reuters.
SAP said the media reports raised questions surrounding contracts and thirdparty business practices in the country. “SAP rigorously investigates any allegations of wrongdoing in any of the more than 180 countries where it operates,” it said.
Ama Bhungane and Scorpio revealed that in August 2015, SAP signed a “sales commission” agreement with CAD House, what they call “a small Guptacontrolled company that specialises in selling 3D printers”.
In the view of the investigative units, the terms suggest “a thinlydisguised kickback arrangement: If the Gupta company were the ‘effective cause’ of SAP landing a Transnet contract worth R100 million or more, it would get 10%”.
SAP SA strongly rejected allegations of kickbacks on Tuesday.