The Special Tribunal on Wednesday ordered German multinational software corporation – Systems Applications Products (SAP) – to pay back more than R400 million to the Department of Water and Sanitation.
Most of the money must be paid to the department within five days.
Wednesday’s Special Tribunal order follows an intensive investigation by the Special Investigating Unit (SIU) in the affairs of the department in its dealings with SAP.
The investigations revealed that the department irregularly concluded software license and support agreements between 2015 and 2016 with SAP.
Armed with evidence, the SIU confronted the department and SAP and pointed out the wrongdoing. By agreement, the contracts were declared invalid and unlawful.
The agreement was then made in the order of the Special Tribunal.
Today the Special Tribunal ordered that SAP repay the department R413 million of the R1 036 000 000 software license contracts.
The R413 million represents the total amount paid by the department to SAP under the 2015 and 2016 software license and support contracts.
In addition, the Special Tribunal ordered SAP to repay the department R 263 282 173.78 within five days of the date of the Order.
Any remainder is to be paid after the Special Tribunal’s determination of whether any further amount should be deducted from the amount due.