By Staff Writer

Software firm SAP announced on Friday that it will provide an update on the investigation into allegations of wrongdoing in its South African business during the last week of October 2017.

The company initiated an investigation spearheaded by international law firm Baker McKenzie on July 12, 2017.

At the same time, SAP placed four senior executives on administrative leave pending the finalization of this investigation.

The German-based firm said in a statement that the team from Baker McKenzie has been reviewing and scrutinizing large volumes of data, talking to a variety of stakeholders and conducting interviews with all relevant persons.

“We are acutely aware that we owe South Africa answers. While we understand the public’s legitimate frustration at the length of the investigation, it is imperative that we get this process right,” said Adaire Fox Martin, member of the Executive Board of SAP SE, who leads SAP’s business in MEE, EMEA and Greater China.

“We remain committed to delivering on our initial promise to manage this process in a transparent way and to give a full account to our employees, customers, partners and the South African public.”

Adaire Fox Martin
Adaire Fox Martin (Photo Credit: Digital News Asia)

In July, SAP initiated an independent investigation spearheaded by a multinational law firm and overseen by Fox-Martin to vigorously review contracts awarded by SAP South Africa.

The South African office of the German software giant SAP is believed to have paid the Guptas front about R100 million “kickbacks” for state business.

The AmaBhungane and Scorpio said in a report that evidence suggests SAP used the Gupta influence network to drive sales of a billion rand to Transnet and other state-owned companies.

In August 2015, SAP signed a “sales commission agreement” with a small Gupta-controlled company that specialises in selling 3D printers, according to AmaBhungane and Scorpio in a report.

The report revealed that the terms suggest a thinly disguised 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%.


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