Business

Software AG 'unaware of non-compliant business practices in SA'

Read time 1min 10sec
Mohamed Cassoojee, senior VP and country manager for Software AG in SA.
Mohamed Cassoojee, senior VP and country manager for Software AG in SA.

German-based software giant says it "is not aware of any non-compliant business practices in its South African operations".

This follows a report by AmaBhungane and Scorpio that new e-mails and documents show that Software AG's South African subsidiary entered into an apparent kickback agreement with a Gupta-controlled company in an attempt to secure a R180 million contract from Transnet Freight Rail.

Following the expos'e, ITWeb this morning contacted Mohamed Cassoojee, senior VP and country manager for Software AG in SA; he said they were still looking into the allegations and will respond.

In a brief statement issued this afternoon, the company said: "Software AG is not aware of any non-compliant business practices in its South Africa operations. Based on current media speculations, the company has started an internal review. Please understand that Software AG cannot make further comment until this review has been completed."

The report notes "in a pattern that is becoming familiar, Software AG agreed to pay Global Softech Solutions (GSS) up to 35% of the value of the contracts it secured with Transnet, the department of correctional services, Mangaung municipality, Sasol and MultiChoice".

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