By Lehlohonolo Lehana.
System Applications Products (Pty) Ltd (SAP) has been given 5 days to pay an amount of R81.5 million to the Department of Water and Sanitation (DWS) by the Special Tribunal.
The matter stems from an investigation by the Special Investigating Unit (SIU) which revealed that the DWS irregularly concluded software licence and support agreements on 22 December 2015 and 26 July 2016 with SAP, a multinational software company.
Papers before court indicated that neither agreements complied with the provisions of Section 217 of the Constitution, the Public Finance Management Act, Treasury regulations and the department’s supply chain management policies.
The SIU probe found that following the 2015 and 2016 agreements, the DWS paid an amount of R413,121,283.40 to SAP. The SIU’s investigation also revealed that the conclusion of the agreements emanated from an elaborate scheme devised by the employees of SAP, the erstwhile employees of the department and the sale commission partners, while they were fully aware that the 2012 agreement was in place and there was no need for the 2015 and 2016 agreements.
In March this year, The Tribunal ordered SAP to repay DWS more than R400 million after it set aside and declared the two software license and support agreement contracts worth more than R1billion between the department and SAP invalid.
The Department of Water and Sanitation (DWS) has since welcomed a ruling by the Special Tribunal.
In a statement, the department said the parties have since agreed before the Tribunal that SAP will pay R263 million and the remainder of the amount that was in dispute would be determined by The Tribunal.
SAP has since agreed to pay the full outstanding amount (R81.5 million) within five court days. Consequently, the agreement will extinguish the dispute between the parties and the matter will be finalised, the department said.