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SAP Investigation Finds Payments Made To Gupta-related Entities In South Africa

German software giant SAP SE (SAP) has announced final results of its investigation into its software contracts with South African state-owned enterprises (SOE) Transnet SOC Ltd. and Eskom.

According to SAP, the central findings confirmed that payments were made to Gupta-related entities, indications of misconduct relating to the management of Gupta-related third parties, and irregularities in the adherence to SAP's compliance processes.

Further, the investigation confirmed that there is no evidence of any payment or attempted payment made to any South African government official or any employee of an SOE in connection with the Transnet and Eskom transactions.

SAP said it has been clear from the outset that it will not tolerate misconduct or wrongdoing. Presided over by independent senior legal counsel, SAP instituted disciplinary proceedings against three of its senior executives, who were put on administrative leave in July 2017 and formally suspended in October 2017.

SAP noted that these executives have since resigned from the company. Under South African labor law, a disciplinary process cannot continue if an employee resigns.
No severance was paid to any employee, and SAP said it reserves its rights in respect of these executives. SAP reported in October that the fourth employee placed on administrative leave has since returned to work.

Further to the announcement by SAP in October 2017 that it has made significant changes to its global compliance processes, the company has allocated additional legal compliance staff to the SAP Africa market unit.

In addition, SAP has strengthened its independent Compliance Committee in the SAP Africa region, and augmented the mandatory annual compliance training that every SAP Africa employee must complete.

"All South African partners are going through revised due diligence processes. In addition, SAP continues to investigate the public sector business in South Africa going back to 2010. If SAP identifies any further matters of concern, it will address them with the same attention and robustness as the Transnet and Eskom investigations," SAP said.

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