SIU welcomes SAP R81m ruling

Monday, October 3, 2022

The Special Investigating Unit (SIU) welcomes the Special Tribunal order for the Systems Applications Products (SAP) to payback the Department of Water and Sanitation (DWS) more than R81 million.

In March 2022, the Special Tribunal ordered SAP to repay DWS R413 million, which is the total amount paid by DWS to SAP between 2015 and 2016 for software licence and support contracts.

The contracts value was over R1 billion. However, SAP disputed an amount of R83 million for third party costs it incurred.

In a new order, dated 29 September 2022, the Special Tribunal ruled that SAP pays DWS the full outstanding amount in the sum of R81 502 073.62 within five days after the court order.

The Special Tribunal ruling comes after SIU investigations revealed that the department the contracts between the department and SAP were irregular and unlawful. The court then set aside these contracts.

The SIU is empowered by the Special Investigating Units and Special Tribunals Act 74 of 1996 to institute civil action in the Special Tribunal or the High Court to correct any wrongdoing it uncovers in its investigation.

Where evidence points to criminal conduct, the SIU refers the evidence to the National Prosecuting Authority for further action.

Fraud and corruption allegations may be reported via the following platforms: siu@hotline.co.za / hotline: 0800 037 774. – SAnews.gov.za