Germany’s Software AG starts probe into state capture reports

PUBLISHED: Tue, 25 Jul 2017 13:28:43 GMT

 Software AG said on Tuesday it is mounting an internal probe after a media report alleged it had paid kickbacks as part of a wide-ranging South Africa government bribery scheme that has also ensnared fellow German software maker SAP.

“Software AG is not aware of any non-compliant business practices in its South Africa operations,” a company spokesman told Reuters, but added: “Based on current media speculations, the company has started an internal review.”

The spokesman said Software AG cannot make further comment until its review has been completed.

The report, published jointly on Tuesday by the Amabhungane and the Daily Maverick’s Scorpio investigative reporting teams, alleges Software AG entered into an apparent kickback deal with a politically connected South Africa family to win contracts.

It said Software AG agreed to pay an intermediary company linked to the Gupta family, who are close allies of President Jacob Zuma, in order to win deals with state-controlled companies or agencies or private firms

Earlier this month, SAP named a new executive team in South Africa after it put four senior managers on leave, pending its investigations into allegations that it was involved in making kickbacks to win government contracts.

(1 euro = 15.1280 rand)

Sign Up for Our Newsletter Daily Update
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.