SAP admits to irregularities in dealings with Eskom, Transnet

The German software giant SAP says an investigation has found money was in fact paid to Gupta-linked companies when it tried to secure contracts with Eskom and Transnet.

The company released a statement on an investigation by law firm Baker McKenzie into news reports from 2017 - which the controversial family received close to R130 million in kick-backs.

"The central findings confirm that there were payments to Gupta-related entities, indications of misconduct relating to the management of Gupta-related third parties and irregularities in the adherence to SAP's compliance processes," reads the statement.

Last year, the so-called #GuptaLeaks revealed money was paid to CAD House - a company owned by Duduzane Zuma and some companies within the Guptas' Sahara group.

The other company in question is known as Global Software Solutions (GSS).

In July 2017, SAP announced the investigation saying all of its South African contracts will be reviewed and placed local management on "administrative leave".

Three executives, who were later formally suspended, have now resigned.

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"No severance was paid to any employee," says the company, adding a fourth employee, who was also placed on administrative leave, has since returned to work.

SAP says the investigation did not find any proof of payments to employees at Eskom or Transnet or any government official.

It also did not find proof of any direct meetings with the Gupta or Zuma families.

As to how the Gupta associates got in on the deals, the investigation found "representatives of the Guptas began to associate themselves with multiple small third parties that had experience in the IT industry".

Some of these had an existing relationship with SAP.

Eskom meanwhile wants to determine whether any of its employees were involved, despite the findings.

Spokesperson Khulu Phasiwe says the power utility welcomes SAP's report, but adds they will launch their own investigation.

"That investigation will start very soon to make sure that if there was anyone among our employees who may have done anything which is constituting misconduct, then action will be taken against them," explains Phasiwe.

SAP has announced a number of steps, including "revised due diligence processes" for its South African partners, further investigations, and cooperating with investigations by law enforcement agencies.