CAPE TOWN, October 26 (ANA) – South Africa’s state-owned freight logistics group Transnet said on Thursday that it felt exonerated from wrongdoing by the voluntary disclosure that business software giant SAP made about allegations of paying a bribe to a Gupta-linked company to secure a lucrative contract with state owned enterprises (SOEs).
This comes after SAP said it had voluntarily disclosed its breach of the US Foreign Corrupt Practices Act in relation to allegations its South African operation paid kickbacks to a Gupta-linked company and had initiated disciplinary procedures against three employees.
SAP said the allegations of wrongdoing in its South African business have had a profound impact on its employees, customers and partners, and on the South African public, and the group apologise “wholeheartedly” for this.
An independent investigation by law firm Baker McKenzie found no evidence of a payment to a South African government official, including Transnet and Eskom employees, but uncovered indications of misconduct in issues relating to the management of Gupta-related third parties.
The investigation found that SAP provided software and received revenue totaling approximately R660 million‚ and paid commissions to entities currently understood to be Gupta-related totaling approximately R107 million, including an amount of VAT for taxes due on the receipt of the funds.
Transnet spokesperson Molatwane Likhethe said in a statement that the company noted and welcomed SAP’s update on the ongoing investigation into its South Africa business.
“The update, which stems from an ongoing investigation on SAP contract with Transnet and has links with Gupta-related companies, has preliminarily absolved Transnet of wrongdoing. According to the SAP statement, investigations into Gupta-related third parties payments, has not revealed any evidence of payment to any Transnet employees,” Likhethe said.
“The payments were as result of commission agreement between SAP and its suppliers. Transnet feels a sense of relief and encouragement on behalf of its over 60,000 employees who continue to work hard to make sure that the goods chain keep on moving.”
Likhethe also said that the freight and logistic company was also reiterating its commitment to good governance.
Allegations of “state capture” emerged after more than 100,000 emails and documents were leaked to the media earlier this year showing evidence of alleged corruption in the issuing of lucrative tenders at major state-owned entities like Transnet and Eskom, and implicating the controversial Gupta family.
The allegations were that SAP had agreed to pay a 10 percent kickback disguised as a “sales commission” amounting to R107 million to a company controlled by the Guptas in order to secure Transnet business.
– African News Agency (ANA)
