SAP Takes Disciplinary Action, Calls in US Authorities, Amid #GuptaLeaks Corruption Revelations

Tammy Harvey
October 27, 2017

"We have reported misconduct to USA authorities, but we have not had any interaction with South African authorities", Fox-Martin said.

SAP says they will reveal all information related to payments made to Gupta-owned companies following the conclusion of an investigation into illicit payments for state contracts.

CAD House is owned by President Jacob Zuma's son Duduzane and businesses within the Guptas' Sahara Group.

The DA notes German software giant, SAP's decision to report it's Gupta linked accounts to prosecutors at the US Department of Justice and the Securities and Exchange Commission after an internal investigation uncovered "indications of misconduct in issues relating to the management of Gupta-related third parties".

The wealthy Gupta family has come under scrutiny and has been accused of exerting undue influence over Zuma. They and Zuma deny wrongdoing. South Africa's Corruption Watch has said it could report the firm to the DoJ, while the Federal Bureau of Investigation recently opened its own probe into United States links to the family, according to the Financial Times.


"As a global company with a commitment to integrity and compliance, the past three months have been humbling for us", said Adaire Fox-Martin, member of the Executive Board of SAP SE, who leads SAP's business in Middle and Eastern Europe (MEE), Europe, the Middle East, and Africa (EMEA), and Greater China.

And the company said it would eliminate all sales commission on all public sector deals in countries that scores below 50 on Transparency International's Corruption Perceptions Index. 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.

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

On Tuesday, the German software giant released a statement saying it has reported alleged misconduct in its South African operations to USA authorities.

While SAP's statement initially sent shares down as much as 0.9% in Frankfurt trading, the stock has since rebounded, rising 1% to 96.45 euros as of 4:38 pm local time.

Other reports by Ligue1talk

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