Contracts between the Department of Water and Sanitation and multinational software company SAP have been declared unlawful and set aside.
The Special Tribunal has ordered multinational software company Systems Applications Products (SAP) to repay over R 400 million to the Department of Water and Sanitation.
The Special Tribunal order follows an intensive investigation by the Special Investigating Unit (SIU) in the affairs of DWS, which revealed that the department irregularly concluded software license and support agreements between 2015 and 2016 with SAP.
On 15 March 2022, the Special Tribunal ordered that SAP repay DWS the amount of R413 million of the R1 036 000 000 software license contracts.
The R413 million represents the total amount paid by DWS to SAP pursuant to the 2015 and 2016 software license and support contracts.
The Special Tribunal further ordered SAP to pay DWS R 263 282 173.78 within five days of the date of the Order, with any remainder to be paid after the Special Tribunal’s determination of whether any further amount should be deducted from the amount due.
SIU spokesperson, Kaizer Kganyago said the outcome of the Special Tribunal order is a continuation of implementation of the SIU investigation outcomes and consequence management to recover financial losses suffered by State institutions.
“There are other matters enrolled in the Special Tribunal which are still awaiting adjudication to the combined value of R2.1 billion and will result in further recoveries for the State. There are other matters enrolled in the Special Tribunal which are still awaiting adjudication to the combined value of R2.1 billion and will result in further recoveries for the State.
“Meanwhile, the SIU made disciplinary referrals to DWS against two senior officials. The SIU was informed that DC against one senior official has been concluded and judgment is expected within this week, while the DWS is considering disciplinary action against the other official. The SIU has also referred evidence pointing towards criminality to the NPA, AFU and SARS. The referrals are in line with the SIU Act 74 of 1996.”Kaizer Kganyago
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