Gupta kickback scandal: SAP suspends SA management, launches probe

JOHANNESBURG — A bombshell report by amaBhungane on a R100m dodgy kickback paid by SAP South Africa to a Gupta company is starting to have very serious ramifications. SAP Africa paid CAD Systems, a 3D printing company with a website that barely works and no clear track record, R100m as a success fee to win Transnet contracts. The deal stinks, from beginning to end. Yet, SAP Africa Managing Director Brett Parker issued a statement this week vehemently defending the deal and even stopping short of threatening the media. Clearly, his statement was not properly authorised by his European and US bosses, as the top management of the global company has now issued a very different statement. Brett Parker and his team have been put on administrative leave while the company is launching a probe, by a law firm and a top exec, into all contracts awarded by SAP South Africa. The company has to do this now because clearly US and German regulators are going to take a serious look at any possible bribery. This is serious; this is huge. The Zupta network is about to receive a shock of epic proportions. Here is the full statement from SAP SE. – Gareth van Zyl

WALLDORF — SAP SE (NYSE: SAP) embodies an unwavering commitment to maintain the highest standards of integrity and transparency across its business. SAP has initiated an independent investigation spearheaded by a multinational law firm and overseen by Executive Board Member Adaire Fox-Martin to vigorously review contracts awarded by SAP South Africa.


SAP has also launched an internal review as part of its utmost commitment to compliance and will make the results of the investigation public once it is concluded.

Read more: #JoiningTheDots: Reading between the lines of SAP’s Gupta defensiveness

Consistent with company policy, SAP has brought in senior expert staff across all relevant functions while the current management team has been placed on administrative leave pending the findings of the review.

“SAP stands for integrity, transparency and compliance,” said Fox-Martin, who leads SAP’s business in EMEA (Europe, Middle East and Africa) and Greater China. “We strive to be exemplary in the manner in which we serve our customers and partners, and in how we treat our employees. Full transparency and integrity are imperative at our company, and we will not tolerate any misconduct.”

Media reports have raised questions surrounding contracts and third-party business practices in the country.

Gupta brothers

SAP rigorously investigates any allegations of wrongdoing in any of the more than 180 countries where it operates.

Read more: Corrupt SAP exposed. Gupta bribery to pull in US, German authorities.

The company’s business policy is to carry out all company activities in accordance with the letter and spirit of applicable legal requirements and therefore maintain the highest standards of business ethics.

SAP strongly adheres to its Global Code of Business Conduct and is committed to follow disciplined and transparent transactions.

Fox-Martin is currently traveling to South Africa to address the concerns of customers, partners and employees.

For more information, visit the SAP News Center. Follow SAP on Twitter at @sapnews.

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