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CAPE TOWN - Media reports emerged on Thursday that German software company SAP allegedly admitted to paying a bribe to secure a lucrative contract with state owned enterprises (SOEs).

They allegedly revealed to US authorities that they paid a 10% commission to a Gupta-linked company to secure a R100 million contract with South African SOEs.

Apparently SAP knew as far back as July 15 that they had paid a commission to secure contracts. The Gupta linked companies are allegedly linked to SOEs Transnet and Eskom.


The news comes a day after Finance Minister Malusi Gigaba delivered his Medium Term Budget Policy Statement (MTBPS) to parliament.


The MTBPS did not make for easy listening as the country's growth forecast was slashed by half to 0.7% amid political and policy uncertainty linked to allegations of state capture and corruption.

Earlier on Thursday, Gigaba speaking at a Business Report post budget breakfast said that political uncertainty was hurting the economy. He said that corruption in SOE's also posed a serious threat to the economy.

SAP said in a statement that they called for an investigation which saw the suspension of three senior SAP officials in South Africa.


View some of the reactions to the news on Twitter below:

 

 

 



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- BUSINESS REPORT ONLINE