Special Tribunal orders SAP to repay Water & Sanitation R400m for invalid contracts
Multinational software company Systems Applications Products (SAP) has been ordered to repay the Department of Water and Sanitation some R400 million.
This is for two software license and support agreement contracts concluded between the department and SAP, valued at more than R1 billion.
The contracts were found to be constitutionally invalid and were set aside by the Special Tribunal.
Spokesperson Kaizer Kganyago says the order follows an investigation conducted by the Special Investigating Unit.
He says the investigation revealed that the department concluded software license and support agreements between 2015 and 2016 with the multinational software company.
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“The SIU confronted DWS and SAP with evidence of wrongdoing and by agreement, the SIU together with DWS and SAP declared the contracts invalid and unlawful.
"On 15 March 2022, the Special Tribunal ordered that SAP repay DWS the amount of R413 million of the R1 036 000 000 software license contracts.
"The R413 million represents the total amount paid by DWS to SAP pursuant to the 2015 and 2016 software license and support contracts."
The Special Tribunal has further ordered SAP to pay the department some R263 million within five days of the date of the order.
"Any remainder should be paid after the Special Tribunal’s determination of whether any further amount should be deducted from the amount due," adds Kganyago.
