walldorf Germany, October 26, 2017 /PRNewswire/ — SAP SE (NYSE: SAP) has voluntarily disclosed the situation in a report. South Africa Business to U.S. authorities responsible for enforcement of the U.S. Foreign Corrupt Practices Act. The company initiated disciplinary proceedings against three employees and made significant changes to its global sales transaction processes.
“As a global company committed to integrity and compliance, the past three months have been humbling for us,” he said. Adair Fox Martinis a member of SAP SE's Executive Committee and leads SAP's business in the midmarket and midmarket regions. eastern europe (me), Europe, middle eastand Africa (EMEA), and Greater China. “Allegations of misconduct in our South African operations have had a significant impact on our employees, customers, partners and the people of South Africa, for which we sincerely apologize.”
Fox-Martin said SAP has begun making voluntary disclosures. July 13, 2017SAP is also committed to fully and fully cooperate with the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC). He acknowledged that investigations by the Department of Justice and the SEC continue.
“I cannot stress enough how seriously the SAP Board of Directors takes these allegations and how committed we are to managing this process in a transparent, ethical, and responsible manner. No,” Fox-Martin said.
disciplinary action
The investigation to date has uncovered no evidence of payments to South African government employees, including Transnet and Eskom employees. However, signs of wrongdoing have emerged in issues related to the management of third parties related to Mr. Gupta. To this end, SAP has initiated formal disciplinary proceedings in accordance with South African labor law against three employees who were placed on leave at the beginning of the investigation. From the beginning, SAP has made it clear that we do not tolerate fraud or fraud.
The investigation revealed that the fourth employee who was placed on administrative leave had no significant involvement with any of Mr. Gupta's affiliates. Employees return to work.
Process changes
The SAP Board of Directors has decided to eliminate sales commissions for all public sector transactions in countries with a Corruption Perceptions Index (according to Transparency International) below 50, effective immediately. south africa Rating is 45.
The SAP Board of Directors has initiated extensive additional controls and due diligence for distributor and value-added reseller relationships on a global basis, including additional audit capabilities.
SAP will deploy additional compliance staff to the SAP Africa market division. Their base is South Africa Report to SAP's global compliance organization.
SAP will further strengthen its Compliance Committee in the SAP Africa region to ensure the integrity and integrity of individual transactions and promote compliance across the board.
In July, SAP promised to release the findings of Baker McKenzie's investigation once it was completed. As the investigation is still ongoing, and in deference to the ongoing investigations of the Department of Justice and SEC, SAP is unable to provide further details at this time. SAP plans to publish the full findings upon conclusion of the investigation.
appendix (Baker McKenzie investigation status)
Baker McKenzie's investigation will initially focus on SAP's contracts with Transnet and Eskom, and this part of the investigation is expected to conclude by the end of 2017. Following a data analysis search of 8.4 million documents, the law firm completed a first-level review of his 131,609 cases. documents, and second-level review of 52,985 documents. Baker McKenzie has given numerous interviews. SAP is also exercising third-party audit rights over companies deemed to be associated with the Guptas, and these audits are in their early stages.
Baker McKenzie continues to research SAP's public sector business under contract with SAP. South Africa Back in 2010. The research to date has revealed the following: December 2014 and November 2016SAP has entered into two agreements for the sale of software to Transnet and two agreements for the sale of software to Eskom, each supported by entities currently believed to be associated with the Guptas.
In connection with these four agreements, SAP will provide software and, in total, approximately R660 million (about $48 million), the total amount of fees paid to entities currently believed to be associated with the Guptas is approximately R94 million (about $6.8 million).The actual amount paid to a third party is approximately R107 million (about $7.7 million) Because by contract, each commission payment includes VAT, the tax payable on receipt of funds.
in December 2016 and June 2017, SAP has entered into two additional agreements to provide software and services to Eskom, with the support of entities currently believed to be associated with the Guptas. No revenue has been received and no fees have been paid in connection therewith.
Following SAP's initial voluntary disclosure, Baker McKenzie spoke with prosecutors from both the Department of Justice and the SEC on behalf of SAP to begin the process of sharing documents and information.
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