SAP hits back against R100 million Gupta kickback allegations
German software giant SAP has strongly rejected reports by investigative journalists in South Africa linking the company to alleged kickbacks, and is threatening to take action.
On Tuesday, amaBhungane released its latest findings relating to the Gupta leaks, where it revealed that SAP had paid a Gupta-linked company R100 million for securing contracts with Transnet worth R1 billion.
The payment was commission for a contract SAP had with CAD House – a company run as a subsidiary of Gupta-owned Sahara Computers – in which it offered 10% of any contract over R100 million it could secure with Transnet.
SAP acknowledged that the payments had been made, and confirmed that the commission contract was in place.
It further defended the contract saying that its agreement with CAD House was like any other, where a company would serve as an extension of its sales force. It denied that it was aware of any alleged money laundering, saying that its contract was with CAD House, and that company alone.
In a statement on Tuesday, SAP again denied that the R100 million paid to CAD House was a kickback, and threatened that it was looking to take action against media houses who were reporting it as such.
“SAP strongly rejects allegations of kickbacks recently made by some South Africa based media. The accusations made around the use and payment of sub-contractors are unfounded and unsubstantiated,” the group said.
As part of its day to day business, SAP South Africa said it “engages various subcontractors, SMMEs and partners”, and that it has always been and will continue to be SAP’s policy to partner with a wide pool of organisations that qualify for our partner programme.
“SAP has taken strong exception to the reports issued in the media today, and is investigating various possible actions,” it said.
You can read the full investigation on the SAP payments on amaBhungane.
Read: Software giant pulled into Gupta saga with allegations of R100 million kickbacks
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