By Reuters
South African investigators are seeking to recover more than Sh2.5
billion (R400 million or $23 million) from
German software firm SAP for
two government contracts they allege were entered into unlawfully, court
documents show.
Although the amount of money sought is small for a company with a market
value of €162 billion (about Sh20.5 trillion), the move by the
authorities is another headache for SAP, which in 2018 admitted to
misconduct over deals with South African State firms during former
President Jacob Zuma's tenure.
SAP, a major global business software company, had said it was reviewing
all its public sector deals in South Africa dating back to 2010. It has
not, however, publicly flagged wrongdoing over the agreements in 2015
and 2016 with the Department of Water and Sanitation.
Investigators say those contracts should be declared invalid because
government regulations were contravened, according to the court papers,
reported here for the first time.
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SAP did not comment on the specific allegations. In a statement, the
company said: "SAP continues to cooperate with South African
authorities/law enforcement and remains committed to the highest
standards of business ethics."
"Our policy is, and always will be, to carry out all company activities
in accordance with the letter and spirit of applicable laws."
The Special Investigating Unit, which is investigating the contracts, told
Reuters that evidence pointing to contravention of regulations by Water ministry officials had been referred to prosecutors.
The SIU has been probing SAP's work for the Water ministry for two
years, after President Cyril Ramaphosa authorised inquiries into
possible procurement irregularities and corruption.
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