SIU seeks to recover over R400 million from SAP

The Special Investigating Unit (SIU) is seeking to recover more than R400 million from German software firm, SAP, for two contracts that it allegedly unlawfully entered into with the South African government.

Reuters News Agency reports that court documents show that the SIU wants its Special Tribunal to declare the contracts invalid as they were in contravention of government regulations.

In a statement issued to Reuters, SAP says it is co-operating with investigations into the matter and remains committed to the highest standard of business ethics.

The SIU has been probing the SAP’s work for the Department Of Water & Sanitation after President Cyril Ramaphosa authorised inquiries into possible procurement irregularities and corruption.

The SIU found that the department’s 2015 contract with SAP was concluded despite the department still having a year left on an existing agreement.

With regards to another contract in 2016, the SIU says neither the department nor its entities had received services from SAP despite the R285-million paid.

In March 2018, SAP admitted to paying more than $9 million to intermediary companies linked to the Gupta family, in relation to software deals with power utility Eskom and state logistics firm Transnet.

The SIU says it is also investigating SAP contracts at Eskom and Transnet.

Meanwhile, recently, the President has issued a strong warning to individuals, companies and public servants who are stealing public funds, especially during the coronavirus pandemic.

Ramaphosa says he has signed a proclamation to speedily empower the Special Investigating Unit, to investigate any unlawful conduct in the procurement of goods and services by state institutions during the nationwide lockdown.

The video below is reporting that President Ramaphosa has signed a proclamation to probe misuse of COVID-19 funds:

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