Get more Mail & Guardian
Subscribe or Login

Software giant SAP faces charges over Gupta-linked payments

German software giant SAP said on Thursday that SA’s Companies and Intellectual Property Commission (CIPC) has laid charges against it with the police in connection with Eskom and Transnet contracts it facilitated, with assistance from Gupta-linked companies as third parties.

The company said in a telephonic press conference briefing that a recently-concluded investigation by law firm Baker McKenzie had found irregularities in the management of these third-party transactions and adherence to internal company processes.

After signs emerged in January that the CIPC would charge the company, as well as KPMG and McKinsey, the companies regulator added contraventions to the Prevention and Combating of Corrupt Activities Act to the charges. They related to SAP’s alleged contravention of sections of the Companies Act of 2008, as well as sections of the Prevention and Combating of Corrupt Activities Act of 2004.

Executive board member Adaire Fox-Martin told reporters the investigation confirmed there was no evidence of payments to any South African government official or employee of a state entity in connection with the Transnet and Eskom contracts for the sale of software to the state utilities.

“The central findings confirm that there were payments to Gupta-related entities, indications of misconduct relating to the management of Gupta-related third parties and irregularities in the adherence to SAP’s compliance processes,” said Fox-Martin.

Three executives in South Africa were faced disciplinary proceedings in 2017 but were not disciplined as they resigned with no severance paid to them, Fox-Martin said.

Last year SAP voluntarily approached the United States Department of Justice as well as the United Securities and Exchange Commission to disclose the transactions.

We’re cooperating

Fox-Martin told reporters that the company indicated to the Directorate for Priority Criminal Investigations (the Hawks) that it would cooperate with any action the Hawks take in connection with the matter, and that it would continue to engage with US authorities.

The company has not heard from the Hawks since proactively notifying them of its cooperation, she said.

“The actions of the US authorities could take years. We receive monthly updates from them on the process and they are starting to ask for documents and they have indicated that they would like to speak to people involved and there seem to be some delays,” Fox-Martin said. — Fin 24

This article has been amended to reflect updates

Subscribe for R500/year

Thanks for enjoying the Mail & Guardian, we’re proud of our 36 year history, throughout which we have delivered to readers the most important, unbiased stories in South Africa. Good journalism costs, though, and right from our very first edition we’ve relied on reader subscriptions to protect our independence.

Digital subscribers get access to all of our award-winning journalism, including premium features, as well as exclusive events, newsletters, webinars and the cryptic crossword. Click here to find out how to join them and get a 57% discount in your first year.

Khulekani Magubane
Khulekani Magubane

Khulekani Magubane is a senior financial reporter for Fin24. 

Related stories


If you’re reading this, you clearly have great taste

If you haven’t already, you can subscribe to the Mail & Guardian for less than the cost of a cup of coffee a week, and get more great reads.

Already a subscriber? Sign in here


Subscribers only

South Africa’s mothballed ‘supermall-ification’ sets strip malls up for success

Analysts agree that the country has enough malls and that, post-Covid, the convenience of local centres lure customers

Mabuza’s Russian jaunts and the slippery consequences of medical tourism

For more than five years the deputy president has remained steadfast in his right to travel abroad to receive medical treatment

More top stories

Deputy president Mabuza begs Tshwane voters: ‘Don’t abandon the ANC’

Angry Atteridgeville residents hurl insults at ‘dysfunctional’ ANC full of ‘corrupt individuals’ as Mabuza fails to placate them with party T-shirts and doeks

Taxi operators clash with cops over disputed Route B97 in...

Three suspects remain in custody following their arrest on charges of attempted murder and assault after eight taxis were impounded

SA teens, you’re next in the queue for a vaccine...

Teenagers between the ages of 12 and 17 will be able to register to receive their Covid-19 jab from 20 October. This group will be given only one dose of the Pfizer vaccine, for now

Former US secretary of state Colin Powell dies aged 84

The 84-year-old died as a result of complications from Covid-19

press releases

Loading latest Press Releases…