Yet SAP was evidently satisfied with whatever service NBS Infosys had delivered. Since the investigation began, the law firm has conducted a data analytics search of over 29.6 million documents, followed by a first level review of 202,599 documents, and a second level review of 64,786 documents. In short, Mathe was repeatedly told that she had not done her homework to determine whether the water boards needed SAP products, how many licences were required and how the department would benefit from this massive investment. SAP South Africa concluded two contracts with Transnet and four with Eskom between December 2014 and June 2017, with GSS and CAD House acting as commissioned intermediaries. What SAP has pocketed effectively comes from all our taxes. Box 1621 Gallo Manor 2052 South Africa Phone: +27 (11) 235 6122 Toll Free: 0800 1125 75 (within South Africa) On 6 July 2016, Mathe delivered a revised submission to the chair of the bid adjudication committee and the acting director-general for approval. There is no way that this represented value for money except for the bribe receivers and the crooked company. We know this thanks to a leaked internal memo from SAP’s then global head of compliance, Melissa Lea, who in early 2016 described the use of business development partners as high risk, “subject to abuse”, and “most often at the centre of corruption cases you may read about globally”. The 10 SAPS members who were arrested at the Parow police station on bribery and corruption charges in late 2014;2. The scandal has weakened the ruling African National Congress, which meets this week to choose a new party leader who likely will become the country's next president in 2019. Mathe wanted permission from then director-general Margaret Diedricks to renew the contract for another three years at a cost of R87-million. A comment added to SAP’s Deal Approval Form notes: “3rd Party Sales Commission strictly at 20% max.”. On 26 June 2016, Lawrence Kandaswami, the newly appointed managing director of SAP South Africa, approached Pillay, his counterpart at SAP Africa, with an unusual request: the business development partners – now NBS Infosys and Matsei – had incurred “expenses” and were asking for an advance on their sales commission. She advanced arguments on SAP’s behalf whenever anyone from [the department] raised any queries… She was extremely defensive and pro-SAP”. Except in this case, the water department was a long-standing SAP client and the contract was for all intents and purposes a renewal of an existing deal. Bypass the South African “criminal justice system” and go the EU anti-corruption officers – they will take action against SAP and its various officers and employees. Jetzt geht’s auch in Deutschland los. Copy. It’s been a bombshell week for software giant SAP in South Africa after it emerged that the company was involved in a very controversial kickback deal with a Gupta-linked company. How Mathe pushed the contract through – successfully – makes for fascinating reading. We encourage different, respectful viewpoints to further our understanding of the world. McKinsey drawn into South Africa's sprawling corruption scandal. In response, on 24 June 2016, the chief financial officer, Mpho Mofokeng, wrote to Mathe’s boss Diedricks raising six objections, including that there was no need for additional licences, there was no budget and he had not been consulted. With maintenance costs and other extras added in, the department was now on the hook for at least R949-million. South Africa is one of the most kleptocratic governments in the world. The corrupt behaviour by SAP and other multinational companies participating in kickbacks and extortion schemes which benefit the Gupta’s only strengthen this wealthy family and serve to undermine the democracy in South Africa. Help us learn with your expertise and insights on articles that we publish. There are many great benefits to being a Maverick Insider. Please note you must be a Maverick Insider to comment. Corruption news. Be an, MAVERICK INSIDERS CAN COMMENT. SAP Africa managing director Cathy Smith has spoken about how SAP South Africa is moving on from the #GuptaLeaks scandal, but SAP has declined to answer our questions about the water department deals or for an interview to discuss other public sector deals. The investigation, led by law firm Baker McKenzie, kicked off in July 2017after public allegations that SAP’s subsidiary used shell companies to […] The next day, election day, SAP paid another R1.4-million into the same account, according to the SIU. We approached Van Niekerk for comment, but he told us that his affidavit was “confidential”, adding: “I am not at liberty to discuss it.”. Might be nice to boycott them except my understanding is their software pretty much controls many databases in SA. At the centre of the bribery was to sell SAP’s software at discounts of up to 82percent through an SAP partner in Panama with the intention to build up a slush fund to pay for bribes. But this situation is not unusual. Corruption in the judiciary is a moderate risk for businesses in South Africa. In a repeat of what happened in December 2015, when Mathe claimed there was budget available to renew the existing SAP contract, she now once again claimed that she had consulted the finance department and confirmed that there was budget available for the new expanded water boards deal. Just in 2019, the Transparency International Corruption Perceptions Index placed the country on an index of 44 out of 100. Everybody has an opinion but not everyone has the knowledge and the experience to contribute meaningfully to a discussion. This R5.5-million was the second of the “€300K” advance payments that SAP had okayed for the business development partners. One contract involved a commission of 10%, while the other five contracts involved a commission rate of 14.9%, just below the 15% threshold that would have triggered an SAP Executive Board review of the … In both instances, it paid commissions to business development partners: 14.9% of the water department deal to NBS Infosys and 14.9% of the Transnet deal to the Gupta-controlled company, CAD House. SAP executives in the US and Germany were repeatedly warned the practice of paying commissions to ‘business development partners’ in South Africa was an invitation to corruption… If SAP wish to continue doing business in South Africa they must prove their integrity and assist in bringing all those involved to justice. The funds would be found, she noted, from her department’s revised half yearly budget: R112-million would come from infrastructure projects, R26-million from the budget to fix leaking canals, R52-million cut from operating costs, and R95-million from “other projects”. about how SAP South Africa is moving on from the #GuptaLeaks scandal, but SAP has declined to answer our questions about the water department deals or for an interview to discuss other public sector deals. Do Germany or the EU not have anti-corruption laws preventing this? Matsei, by contrast, was a well-established boutique consultancy with a track record in the industry. The question then becomes, why, with all these resources available to tackle corruption, do South … The only person who could approve an advance was Peter David, the chief financial officer of SAP’s Europe, Middle East and Africa region, who was based in Germany. SAP suspended executives in South Africa after reports of the Walldorf-based company’s dealings with the corruption-linked Gupta family, and in 2018 … Corruption Watch is a Transparency International chapter working to fight corruption in South Africa For up to date information about COVID-19, please visit www.sacoronavirus.co.za x. FRANKFURT (Reuters) – Europe’s top technology company, SAP (), has put four senior managers in South Africa on leave and begun a probe into reports that have dragged the company into an influence peddling scandal involving friends of President Jacob Zuma.South African media reported allegations on Tuesday that SAP paid kickbacks in the form of sales commissions to a firm linked to … German ERP giant SAP has admitted irregularities and indications of misconduct in its South African business following a major corruption probe related to public sector deals worth almost $50m. But instead of taking a step back, SAP South Africa was gearing up for a bumper year. As per the sales commission agreement, the two business development partners were now entitled to invoice for 14.9% of this tranche, minus the R6.3-million advance payments they had already received. The SIU, along with the water department, is demanding that SAP return more than R400-million already paid on the basis that the department will supposedly not have derived a single cent of value by the time the five-year contract expires in six months’ time.
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