THE Special Investigating Unit (SIU) continues to recover government’s stolen funds from the state entities linked to the controversial Gupta family.
Recently, in one of the SIU successes, a software company, Systems Applications Products (SAP), was ordered by the Special Tribunal to pay the SIU R500 million within seven days.
The order stems from a settlement agreement reached by SIU and SAP on the validity of two contracts awarded by the cash-strapped power utility, Eskom between 2013 and 2016.
Eskom and SAP had entered into two contracts - the Enabling Agreement and Cloud Services Agreement - worth about R1,1 billion.
The Special Tribunal order, dated 20 March 2024, also declared that the two contacts are constitutionally invalid and therefore set aside.
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SIU spokesman Kaizer Kganyago said the order of the Special Tribunal is part of the implementation of the SIU investigation outcomes and consequence management to recover financial losses suffered by state institutions due to negligence or corruption.
He said the settlement agreement doesn't absolve SAP or any implicated party from possible prosecution.
“The SIU’s investigation found that Eskom entered into an Enabling Agreement contract with SAP for licences, maintenance, support, and ad hoc services at a contract value of R1 037 045 965.50. Thereafter, SAP entered into a Sale Commission Agreement with CAD House CC, a Gupta-linked company. Furthermore, Eskom and SAP signed an agreement for Cloud services at a contract value of R21 712 514.82.
“Following payments from Eskom to SAP, CAD House received funds from SAP. SIU findings revealed that the Enabling Agreement and the Cloud Services Agreement did not comply with the Public Finance Management Act, which resulted in Eskom incurring fruitless and wasteful expenditures in respect of the agreements,” he said.
