File Image

CAPE TOWN - SAP says they will reveal all information related to payments made to Gupta-owned companies following the conclusion of an investigation into illicit payments for state contracts.

SAP said that no money was paid to any government official or SOE official but commission was paid to Gupta-linked companies to help secure contracts.

The first leg of the investigation is set to be concluded towards the end of the year and involves looking at their involvement in South African government contracts.

US law firm Baker McKenzie has been contracted by SAP  to investigate the public-sector business in South Africa going back to 2010. 

In statement released on Thursday, SAP outlined details pertaining to the investigation.

"To date the investigation has determined that, between December 2014 and November 2016, SAP concluded two contracts for the sale of software to Transnet and two contracts for the sale of software to Eskom, each with the assistance of an entity currently understood to have been Gupta-related," read the statement.

"In connection with these four contracts, SAP provided software and received revenue totaling approximately R660 million (approximately USD 48 million), and paid commissions to entities currently understood to be Gupta-related totaling approximately R94 million (approximately USD 6.8 million). 

"The amounts actually paid to the third parties totaled approximately R107 million (approximately USD 7.7 million) because, by contract, each commission payment included an amount of VAT for taxes due on the receipt of the funds," they said.

In December 2016 and June 2017, SAP concluded two additional contracts to provide software and services to Eskom with the assistance of an entity currently understood to have been Gupta-related. 


BUSINESS REPORT ONLINE