Corruption Watch: SAP's decision on Gupta saga show Hawks not taken seriously

Randall Padilla
October 29, 2017

It emerged on Thursday that SAP had reported itself to the U.S. authorities for alleged misconduct which saw the company making large payments to the Gupta family.

Corruption Watch executive director David Lewis. This includes SA, whose rating is 45. "The payments were as a result of a commission agreement between SAP and its suppliers".

The Guptas also managed to obtain a bid by SAP to provide commercial software for use in the South African public service.

This comes after SAP announced yesterday that it has reported its alleged Gupta-linked kickbacks to U.S. authorities for further investigation.

SAP says it's not working with South African authorities at this stage but has reported itself to the U.S. authorities for allegations of wrongdoing.

In September this year, the DA laid charges of money laundering and corruption against the South African subsidiary of the software firm, after investigative journalism outfit amaBhungane reported that R100m in kickbacks allegedly changed hands between SAP and a Gupta-linked company, CAD House, to secure contracts for the firm at Transnet and Eskom.

SAP head of investigations and global compliance Philipp Klarmann said there were different obligations in different jurisdictions.

SAP has also commenced disciplinary proceedings against three employees in South Africa based on a three-month investigation that "uncovered indications of misconduct in issues relating to the management of Gupta-related third parties" in bidding for contracts from government-owned companies, according to Financial Times.

Corruption Watch says software giant SAP's decision to report its dealing with the Guptas to United States authorities shows the company may not take the Hawks seriously. "SAP must hand over any and all information that may have bearing on the investigation".

"The allegations of wrongdoing in our South African business have had a profound impact on our employees, customers and partners, and on the South African public - and we apologise wholeheartedly for this".

The FBI and the United States justice department has also begun investigating the Gupta family and their relatives in the US.

CAD House is owned by President Jacob Zuma's son Duduzane and businesses within the Guptas' Sahara Group.

"SAP is very active globally", he said.

"We must stay away from corrupt companies, locally and internationally".

The Federal Bureau of Investigation (FBI) in the United States and the UK's Serious Fraud Office are investigating claims of money laundering through bank accounts and various firms connected to the Gupta family.

Other reports by AllAboutTopnews

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