NEWS

Is Software AG Involved In A Kickback Deal With The Guptas?

Reports suggest that the Guptas helped the software company secure state tenders.

25/07/2017 06:36 SAST | Updated 25/07/2017 06:57 SAST
Siphiwe Sibeko / Reuters
A general view of the Sahara computers headquarters.

New evidence from the Gupta leaks trove of emails and documents reportedly shows how another German company, Software AG, might have entered into an alleged kickback agreement with a Gupta company to score a R180 million contract with Transnet, amabhungane, Scorpio and News24 reported on Tuesday.

This follows allegations that German software company SAP also had a kickback agreement with the Guptas, to help them secure a contract with Transnet. SAP denied the allegations.

Software AG reportedly agreed to pay Global Softech Solutions (GSS) up to 35% of the value of the contracts it secured with Transnet. This was also allegedly to secure contracts with the department of correctional services, Sasol, MultiChoice and the Mangaung municipality.

The Gupta's Sahara Systems was in the process of buying into GSS, amabhungane, Scorpio and News24 reported.

A commissions agreement between Software and GSS reportedly allows GSS to claim "referral fees" and "sales assist fees" for helping Software AG identify and close deals.

In one case, Software attempted to sign a deal with Sasol. Sasol told reporters it was not aware of GSS's involvement. The deal was not signed, in the end. But an agreement shows that GSS was expected to earn R10.5 million from the contract.

Similarly, MultiChoice confirmed that it signed a deal with Software AG for IT services in 2015, but had no knowledge of GSS at all. Yet GSS was reportedly expected to earn R4.5 million for the deal.

Software AG responded by saying: "Software AG prospective Partners undergo a stringent verification process that ensures Partners are able to add value to the customer... Software AG is committed to conducting its business fairly, impartially, in an ethical and proper manner, and in compliance with all laws and regulations."

The Guptas did not respond to questions.