Cape Town — The Special tribunal has ordered software giants, SAP to pay a R500 million fine to the Special Investigating Unit (SIU) over corrupt contracts with state-owned entity, Eskom.
In a series of X posts, the SIU revealed the details of the fine. It said the fine pertains to two contracts SAP engaged with Eskom between 2013 and 2016. SIU spokesperson Kaizer Kganyago says that following SAP’s agreement to supply Eskom with software licenses and support, it disbursed millions of rands to a company associated with the Gupta family.
“The Special Tribunal order dated the 20th of March has declared the two contracts to be invalid and were set aside. The order of the tribunal is part of the SIU investigation outcome and consequence management to recover financial losses suffered by the state,” Kganyago said.
The Special Tribunal has ordered German software company SAP to pay R500 million to the SIU over Gupta-linked deals between them and Eskom. SIU spokesperson Kaizer Kganyago says this is for a contract Eskom entered into without compliance.https://t.co/mpaRTkBugu#Newzroom405 pic.twitter.com/icIHvkTOkl
— Newzroom Afrika (@Newzroom405) March 25, 2024
It said the fine did not absolve any of the implicated parties from possible prosecution, and that the investigation found that Eskom entered into an enabling contract with SAP for licenses, maintenance and support in a contract valued at over R1 billion.
The SIU found that Enabling Agreement and the Cloud Services Agreement did not comply with the Public Finance Management Act, which meant Eskom incurred wasteful expenditures as a result of the contract.
“The SIU was, in terms of Proclamation R.11 of 2018, authorised by President Cyril Ramaphosa to investigate allegations of corruption, malpractice, and maladministration in the affairs of Eskom.” it said.
In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU will refer any further evidence pointing to criminal conduct to the National Prosecuting Authority (NPA) for further action.
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Picture: X/@ZANewsFlash
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Compiled by Matthew Petersen
