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Corruption Watch: More people may be implicated in SAP-Gupta scandal

SAP has admitted that payments of up to R100 million were paid to a Gupta-linked company that assisted with contracts with Eskom and Transnet.

Corruption Watch's David Lewis. Picture: corruptionwatch.org.za

JOHANNESBURG - Corruption Watch says that more people may be implicated in the SAP-Gupta scandal, with the software giant likely to face major penalties.

SAP has admitted that payments of up to R100 million were paid to a Gupta-linked company that assisted with contracts with Eskom and Transnet but insists that no bribes were paid to government officials.

However, it has uncovered indications of misconduct related to Gupta-linked third parties.

It says it's disclosed these contracts to US authorities for further investigation and has taken action against three implicated employees.

Corruption Watch's David Lewis says that it is possible that the three implicated employees weren't the only ones who knew what was going on.

“Investigations will start peeling off those layers of the onion. And if those three are not the only ones who will have known, the way in which the investigations progress generally is that those three will tell the authorities.”

Leaked emails have shown that SAP signed commission agreements with the company in order to secure contracts with state-owned entities.

SAP says that while the investigation is not yet complete, it has taken significant steps to deal with allegations of wrongdoing.

Along with disclosing its situation to United States authorities, SAP has also decided to remove sales commissions on all public sector deals in high-risk countries, including South Africa.