SAP to reveal Gupta-linked kickback details following internal investigation

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SAP to reveal Gupta-linked kickback details following internal investigation

"In connection with these four contracts, SAP provided software and received revenue totalling approximately R660m, and paid commissions to entities now understood to be Gupta-related totalling approximately R94m".

In July SAP was accused of paying CAD House millions to secure contracts with Transnet.

"To this end, SAP has instituted formal disciplinary proceedings, in accordance with South African labour law, against three employees who were placed on administrative leave at the beginning of the investigation", the company said in a statement. South Africa's CPI rating is 45 as of the 2016 index.

"The amounts actually paid to the third parties totalled approximately R107m because, by contract, each commission payment included an amount of VAT [value added tax] for taxes due on the receipt of the funds".

In December 2016 and June 2017, SAP concluded two additional contracts to provide software and services to Eskom with the assistance of an entity now understood to have been Gupta-related.

The Hawks says it's working with U.S. and German authorities in their investigations of companies allegedly linked to the capture of South African state owned enterprises (SOEs).

"Following SAP's admission today, the police have an obligation to investigate fully and to leave no stone unturned", the DA said in an emailed statement Thursday.

In statement released on Thursday, SAP outlined details pertaining to the investigation.

Corruption allegations surrounding the ANC-connected Guptas ensnared one of Germany's biggest companies as SAP SE joined worldwide businesses ranging from KPMG LLP to McKinsey & Co in reporting links with the family.

On Thursday Adaire Fox-Martin, a member of SAP's board, said: "We can not emphasise enough how seriously the SAP executive board takes these allegations, or how committed we are to managing this process in a transparent, ethical and responsible way".

SAP received revenue of about 660 million rand ($47 million) and paid commissions to Gupta-related entities, SAP said.

"Failure of the NPA to pursue this matter means the South African authorities have now outsourced their responsibilities of law and order to foreign nations like the United States of America".

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