Software AG Awaits German Head-Office Response Amidst Gupta Kickback Furore

July 25, 2017 • General, Southern Africa, Top Stories

Software AG, Gupta, Scandal, Kickbacks, South Africa, Corruption, Report, GuptaLeaks

Ajay and Atul Gupta (Image Source: Mail & Guardian)

Another week, another Gupta kickback allegation. This time it is German software giant- Software AG – being linked to the infamous Gupta family in leaked emails.

According to amaBhungane and Scorpio, an investigative journalism site, leaked Gupta emails purport that Software AG allegedly entered into an apparent kickback agreement with a Gupta-controlled company in an attempt to secure a R180m contract from state owned Transnet Freight Rail.

When asked for comment on the latest revelations, a spokesperson from Software AG told our reporter that the company was “awaiting a response from the German head office before releasing a statement to the press.”

The Scandal Unpacked 

In what is becoming a daily occurrence, amaBhungane and Scorpio claim that Software AG agreed to pay Global Softech Solutions (GSS) up to 35% of the value of contracts it secured with Transnet, the department of correctional services, Mangaung municipality, Sasol and MultiChoice.

According to News24, The Guptas’ Sahara Systems was in the process of buying into GSS, an IT services company, at the time.

Software AG, which last year boasted €872-million (R13-billion) in worldwide revenues, is one of Europe’s largest software companies and according to the leaked emails, the company was reportedly willing to pay large sums of money to a Gupta-controlled company under the guise of “commissions” in the hope of unlocking contracts with the state.

It should be noted that Software AG has confirmed the partnership with GSS, but denied any wrongdoing.


Staff Writer



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