German software giant SAP has come forward, apologised and admitted wrongdoing on their behalf for the company’s work in South Africa. The company has also disclosed its situation in SA to US authorities.
SAP has initiated disciplinary proceedings against three employees. Why? Dodgy works with the Guptas in our country, of course.
“The investigation has not revealed any evidence of a payment to a South African government official, including Transnet and Eskom employees. It has, however, uncovered indications of misconduct in issues relating to the management of Gupta-related third parties. To this end, SAP has instituted formal disciplinary proceedings, in accordance with South African labour law, against three employees who were placed on administrative leave at the beginning of the investigation. SAP has been clear from the outset that it will not tolerate misconduct or wrongdoing.”
The SAP board has since decided to eliminate sales commissions on all public sector deal, “In countries with a Corruption Perceptions Index (according to Transparency International) below 50, effective immediately. South Africa’s rating is 45.”
An investigation by Baker McKenzie is still ongoing, but it has so far determined that SAP concluded two contracts for the sale of software to Transnet and Eskom. Each contract was concluded with “the assistance of an entity currently understood to have been Gupta-related.”
“In connection with these four contracts, SAP provided software and received revenue totalling approximately ZAR 660 million (approximately USD 48 million), and paid commissions to entities currently understood to be Gupta-related totalling approximately ZAR 94 million.”
With information like this now becoming more and more frequent, could we actually see the FBI manage to nail the Guptas? With companies and banks turning their backs on the family, it’s becoming more and more of a possibility.