Pressure mounts for government to drop SAP: report

There a new calls for public enterprises minister Pravin Gorhdan to drop German software group SAP, following the company’s “admission of guilt” in its role in state capture.

According to the City Press, the Black Business Council is putting pressure on Gordhan to take action against SAP in the same way the auditor general and other companies have done against KPMG.

SAP in March admitted to paying as much as R128 million in kickbacks to secure government contracts with the help of Gupta-linked companies.

While auditing group KPMG has suffered the brunt of public and corporate outrage for its ties to the Guptas and other scandals, the silence has been deafening when it comes to SAP, the council said.

KPMG has lost two major clients in the past few weeks, including the country’s auditor general and Absa – the latter of which is said to be costing the group over R130 million a year.

While another big client, Nedbank, says it is keeping the auditor on for now, many analysts have said it’s just a matter of time, with the group’s future in South Africa – at least over the short-to mid-term – in question.

You can read the full report in the City Press for 6 May 2018


Read: Absa drops KPMG as auditor

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