Net closes on SAP Zupta ‘kickback deal’

Pressure is mounting on the allegedly Gupta-linked CAD House following the decision yesterday by the Democratic Alliance (DA) to lay charges against the company and the German-based software giant SAP.

According to DA shadow minister of public enterprises Natasha Mazzone, SAP appointed CAD House on a consultancy basis and agreed to pay them 10% in commission if the company helped them secure a Transnet contract.

“As the extent of the Guptas’ capture and corruption continues to be exposed, one man seems to be the spider at the centre of the web with regards to dodgy dealing at state-owned entities and that is former public enterprises minister Malusi Gigaba [now the finance minister].

“The SAP deal is the seventh dodgy deal that happened under Gigaba’s watch as public enterprises minister and it is highly unlikely that this is coincidental. Where there is smoke there is fire,” said Mazzone.

The story was originally broken by amaBhungane and Daily Maverick’s investigative wing, Scorpio. The #GuptaLeaks e-mails revealed that SAP signed a “sales commission agreement” in 2015 with CAD House, which specialises in selling 3D printers.

The agreement stated that if CAD House’s Santosh Choubey delivered a Transnet contract worth R100 million or more, it would receive 10% in commission.

It is not clear how Choubey had the resources or know-how to deliver SAP products: “SAP denies it paid kickbacks or was party to laundering the payments, arguing that CAD House had ‘the necessary skills in terms of positioning our solution’ and was paid a sales commission for acting as ‘an extension of the sales force’,” amaBhungane wrote.

Choubey was “a key Gupta lieutenant employed by their (the Guptas’) Sahara Systems”.

A glance at CAD’s website shows it “nurtured a dream to create a comprehensive and valuable partnership with SAP and [is] determined to develop a long-lasting association” with the company.

However, try to open the “find out more” button linked to the SAP server and the classic error page pops up: “404 – File or directory not found”.

“The DA has reason to believe SAP South Africa procured the services of CAD House purely because they wanted access to its owners, Duduzane Zuma [President Jacob Zuma’s son] and the Guptas’ connections within Transnet with a view to securing a lucrative contract,” said Mazzone.

SAP, for its part, has reacted swiftly, suspending four senior managers of its South African branch and appointing Claas Kuehnemann as acting MD for Africa and Peter David as acting chief financial officer.

SAP also appointed law firm Baker McKenzie to lead the external probe, together with other global experts such as forensic firm FTI Consulting.

The companies involved may be subject to the US’s Foreign Corrupt Practices Act, a powerful piece of legislation that makes it illegal for companies to influence foreign officials with any personal payments or rewards.

In the case of foreigners, if there is a link to the US, the Act treats the person as if they were in the US at the time the act was committed. – amandaw@citizen.co.za