Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Public money, private plans: MPs demand Post Office transparency

      13 June 2025

      Coal to cash: South Africa gets major boost for energy shift

      13 June 2025

      China is behind in AI chips – but for how much longer?

      13 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025

      10 red flags for Apple investors

      13 June 2025
    • World

      Yahoo tries to make its mail service relevant again

      13 June 2025

      Qualcomm shows off new chip for AI smart glasses

      11 June 2025

      Trump tariffs to dim 2025 smartphone shipments

      4 June 2025

      Shrimp Jesus and the AI ad invasion

      4 June 2025

      Apple slams EU rules as ‘flawed and costly’ in major legal pushback

      2 June 2025
    • In-depth

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025

      South Africa unveils big state digital reform programme

      12 May 2025

      Is this the end of Google Search as we know it?

      12 May 2025
    • TCS

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025

      TCS | Sentiv, and the story behind the buyout of Altron Nexus

      3 June 2025

      TCS | Signal restored: Unpacking the Blue Label and Cell C turnaround

      28 May 2025
    • Opinion

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025

      Digital giants boost South African news media – and get blamed for it

      29 May 2025

      Solar panic? The truth about SSEG, fines and municipal rules

      14 April 2025

      Data protection must be crypto industry’s top priority

      9 April 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Software AG now drawn into Gupta ‘kickbacks’ scandal

    Software AG now drawn into Gupta ‘kickbacks’ scandal

    By Staff Reporter25 July 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    [dropcap]F[/dropcap]irst it was SAP. Now another German software multinational, Software AG, has been drawn into an alleged kickbacks scandal involving the Guptas.

    According to a report published on News24 and the Daily Maverick on Tuesday, Software AG entered into an “apparent kickback agreement” with Gupta-controlled Global Softech Solutions (GSS) to secure a R180m contract from Transnet Freight Rail.

    It reportedly agreed to pay the company as much as 35% of the value of contracts it secured with Transnet, MultiChoice, Sasol, the department of correctional services and the Mangaung (Bloemfontein) municipality.

    As with SAP, the Software AG commission agreement comes across as stage managed to disguise payments to politically connected people and their companies

    MultiChoice and Sasol reportedly confirmed discussions with Software AG, with MultiChoice placing business with the company, but both firm denied any knowledge of GSS.

    According to the report, Sahara Systems, which is owned by the Guptas, was in the process of buying into GSS at the time. It alleged that Software AG sales director Riaaz Jeena created a second sales commission deal, “seemingly to ensure he, too, would receive a slice of the pie”.

    “It is not clear how much money flowed from Software AG to GSS as several of the opportunities identified did not materialise,” the report said. “But there is very little evidence that GSS earned its fees by identifying leads or doing the sales legwork.

    “As with SAP, the Software AG commission agreement comes across as stage managed to disguise payments to politically connected people and their companies, in essence an apparent kickback for helping Software AG to secure business.”

    Second largest

    Software AG, the second largest software company in Germany after SAP, operates in more than 70 countries around the world. It is traded on the Frankfurt Stock Exchange and boasts 10 000 business customers globally. It is best known for its Adabas database management system and its Natural development language.

    The latest revelations come two weeks after SAP found itself caught up in allegations that it, too, had paid kickbacks to a Gupta-controlled company — CAD House — to secure business from Transnet and other government entities.

    That report, also written by investigative journalism outfits amaBhungane and Scorpio, led to SAP suspending its top four executives in South Africa, including SAP Africa MD Brett Parker and SAP South Africa MD Lawrence Kandaswami, pending the outcome of an internal and external investigation.

    SAP board member Adaire Fox-Martin jetted into the country 10 days ago to deal with the fallout. She has promised to publish the findings of the investigations (listen to the audio transcript of a press call she held on 13 July).

    According to the new report, Software AG has confirmed its relationship with Global Softech Solutions, but has denied wrongdoing.  — © 2017 NewsCentral Media



    Adaire Fox-Martin Brett Parker Global Softech Solutions GSS Lawrence Kandaswami Riaaz Jeena SAP Software AG top
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleInterview | Behind SA cryptocurrency start-up Project Ubu
    Next Article Alphabet falls on worries over rising costs at Google

    Related Posts

    SAPHILA 2025 – transcending with purpose, connection and AI-powered vision

    13 June 2025

    ERP systems ready for VAT hike but rollback risk looms

    22 April 2025

    SAP is now Europe’s most valuable company

    24 March 2025
    Company News

    Huawei Watch Fit 4 Series: smarter sensors, sharper design, stronger performance

    13 June 2025

    Change Logic and BankservAfrica set new benchmark with PayShap roll-out

    13 June 2025

    SAPHILA 2025 – transcending with purpose, connection and AI-powered vision

    13 June 2025
    Opinion

    Beyond the box: why IT distribution depends on real partnerships

    2 June 2025

    South Africa’s next crisis? Being offline in an AI-driven world

    2 June 2025

    Digital giants boost South African news media – and get blamed for it

    29 May 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.