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Germany's SAP admits misconduct in South Africa Gupta deals


(Reuters) - German software maker found compliance breaches and "indications of misconduct" in $50 million of public sector deals in involving the Guptas, friends of former accused of corruption, it said on Thursday.

Outlining the findings of an external legal review of five with state-run firm and rail-freight company Transnet, said three executives suspended last year had resigned without severance pay.

said on Thursday it would launch its own probe into the contract.

SAP admitted it paid more than $9 million to intermediary companies controlled by the Guptas. One of the Gupta brothers, Atul, was declared a fugitive from justice and fled after was forced out of office by his party last month.

However, the company said there was no evidence of direct payments to officials.

As a result of the investigation, SAP said it had tightened up its compliance and anti-corruption procedures, including banning sales commissions on public sector contracts in countries with poor graft ratings, including

"The investigation has confirmed that even strong are vulnerable and therefore require eternal vigilance," SAP said in a statement. "While we cannot turn back the clock, we can promise to do better."

SAP shares were little-changed at 86.91 euros, up 0.2 percent at 1319 GMT.

A for the Guptas was not immediately available for comment.

(Reporting by Joe Brock; Editing by Ed Cropley)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Thu, March 08 2018. 23:07 IST