Legal View

Software AG issues statement

Johannesburg, 19 Feb 2018
Read time 1min 30sec

Following coverage in the media concerning potential improper arrangements between Software AG South Africa and Global Softech Solutions (GSS), the Software AG Group issues the following statement:

1. Software AG has viewed the media coverage in a serious light. In the context of conducting an internal audit, Software AG engaged Adams & Adams, a reputable South African law firm, to conduct an impartial review of the company's business conduct with GSS.

2. The review did not reveal any evidence of corruption. However, it did reveal a payment made to GSS in 2015 (prior to its acquisition by Sahara Systems) that did not have sufficient supporting documentation in accordance with Software AG's corporate governance standards.

3. Following the review, disciplinary proceedings were instituted against the Sales Director, Riaaz Jeena. Before the disciplinary hearing, Jeena tendered his resignation with immediate effect.

4. Software AG reiterates that the review found no evidence of corruption, personal gain or an improper business relationship with GSS. There was no evidence that, as a result of the payment made to GSS, Software AG gained any undue business advantage. In addition, there was no evidence that any improper business activities were conducted by GSS with any Software AG customer or prospect.

5. To ensure ongoing ethical business practices, the Software AG Group Board nominated Augusto Abbarchi, Global Senior Vice President, as its representative in the South African subsidiary since October 2017.

6. Software AG cannot comment regarding allegations involving any other parties.

7. Software AG remains committed to an ethical business approach and to an ongoing review and improvement of its business practices to maintain the highest possible corporate governance standards.

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