S. Africa, US, Germany to collaborate in fraud probe

Lucy Hill
October 27, 2017

Corruption allegations surrounding the ANC-connected Guptas ensnared one of Germany's biggest companies as SAP SE joined worldwide businesses ranging from KPMG LLP to McKinsey & Co in reporting links with the family.

German software giant SAP AG Thursday said it is facing a USA corruption probe related to its alleged corrupted business dealings in South Africa.

"In connection with these four contracts, SAP provided software and received revenue totalling approximately ZAR 660 million (approximately United States dollars 48 million), and paid commissions to entities now understood to be Gupta-related totalling approximately ZAR 94 million".

The preliminary findings of SAP's internal investigation have not yet revealed any evidence that payments were made to the South African government, Eskom or Transnet officials has been discovered.

The wealthy Gupta family has come under scrutiny and has been accused of exerting undue influence over Zuma. Its own probe was carried out by Baker & McKenzie. The Guptas and Zuma deny wrongdoing.

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With the plaintiff also seeking several other directions, the main case and other tagged cases are still pending. He pointed out that it is an offence if the national flag is defaced, burnt or disfigured.

SAP said it had voluntarily reported itself over to the U.S. Department of Justice and the Securities and Exchange Commission (SEC). The company will stop paying sales commissions on public sector deals in countries with a Corruption Perceptions Index below 50, it said. SAP must hand over any and all information that may have bearing on the investigation, following our charges, so that we can make sure that those involved are held accountable to the full extent of the law.

SAP's investigation has so far cleared one employee, while formal disciplinary proceedings have been instituted against three others.

The Guptas, whose interests include mining and media companies, are being investigated in South Africa over the appropriation of public money, known as "state capture". "We have not yet made a decision yet if we will approach South African authorities".

SAP received revenue of about 660 million rand ($47 million) and paid commissions to Gupta-related entities, SAP said.

While SAP's statement initially sent shares down as much as 0.9 percent in Frankfurt trading, the stock has since rebounded, rising 0.4 percent to 95.83 euros as of 11:36 a.m. local time.

Other reports by TheDailyFarc

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