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SAP sees fresh R1bn claim over Eskom deals

Samuel Mungadze
By Samuel Mungadze, Africa editor
Johannesburg, 17 Nov 2022

German-based software giant SAP is facing a fresh claim of R1 billion from the Special Investigating Unit (SIU) over fees paid by Eskom on state capture deals.

The SIU has filed claim papers with the Special Tribunal, which is mandated to recover public funds syphoned from the fiscus through corruption, fraud and illicit money flows.

An amaBhungane report yesterday said the new claim against SAP emanates from a handful of Eskom deals the company obtained by paying “business development” fees to companies owned or controlled by the Guptas.

The biggest deal, amaBhungane reports, was for R495 million signed in 2016, after red flags had already been raised about the Guptas.

The latest development comes a few weeks after SAP agreed to pay R345 million as settlement over an invalidated contract with the Department of Water and Sanitation.

In September, the Special Tribunal announced a full and final settlement on the tainted contract had been reached.

SAP was first ordered to pay back R263 million in March, and an additional R82 million was imposed in September.

The invalidated water affairs contract didn’t comply with the provisions of Section 217 of the Constitution, PFMA, treasury regulations, or the department's supply chain management policies.

Now, with the Eskom contract, SAP faces a R1 billion demand from the SIU after it admitted it paid monies to intermediary companies controlled by the Guptas.

SAP is accused of paying CAD House, a company linked to the Guptas, in order to drive sales worth a R1 billion to Eskom, Transnet and other state-owned companies.

Commenting on the latest claim, SAP Africa CEO Cathy Smith tells ITWeb: “SAP looks forward to further engagement with Eskom and the SIU on this matter.”

“SAP continues to cooperate fully with the SIU and other authorities relating to their ongoing review of Eskom contracts dating back to 2016. Indeed, Eskom remains one of SAP’s most valued customers.

“For over 20 years, SAP has partnered with Eskom to provide the best technology solutions to assist in meeting its critical business needs. Eskom usage of SAP products is strong, and Eskom continues to ask SAP for additional support, maintenance and training, given Eskom’s critical business challenges. We are very proud to support Eskom, as it seeks to fulfil its mandate to the people of South Africa.”

When approached by ITWeb to comment on the amaBhungane report, Ngwako Motsieng, communications manager at the SIU, said: “The SIU did not issue a statement on the matter. The information might have been taken from the Special Tribunal papers. Feel free to contact the tribunal.”

The tribunal had not responded to ITWeb’s query by the time of publication.

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