The local arm of software giant SAP has been accused this week of paying CAD House millions to secure contracts with Transnet, and now the global firm is launching an investigation.

The investigation will be overseen by SAP executive board member Adaire Fox-Martin and all local management has been placed on administrative leave pending the findings of the investigation.

“We strive to be exemplary in the manner in which we serve our customers and partners, and in how we treat our employees. Full transparency and integrity are imperative at our company, and we will not tolerate any misconduct,” Fox-Martin said in a statement.

SAP South Africa has rejected the allegations.

“The accusations made around the use and payment of sub-contractors are unfounded and unsubstantiated. SAP is dedicated to conducting every aspect of our business responsibly and in accordance with the highest global compliance and legal standards,” the firm said in a statement sent to Bloomberg.

Local 3D printer firm CAD House is embroiled in the controversy and was allegedly paid $7.8 million to secure contracts with Transnet.

The agreement was reportedly nestled within in a stack of documents obtained by the amaBhungane Centre for Investigative Journalism that have since come to be known as the Gupta Leaks.

SAP’s Fox-Martin will address concerns of the firms customers, partners and employees upon her arrival in South Africa


Brendyn Lotz writes news, reviews, and opinion pieces for Hypertext. His interests include SMEs, innovation on the African continent, cybersecurity, blockchain, games, geek culture and YouTube.