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In August 2015, SAP South Africa officials reportedly signed a “sales commission agreement” with a small company, CAD House, that specializes in selling 3D printers. CAD House is a subsidiary of the Sahara Group, controlled by the Gupta family. The Gupta family has been linked to South African President Jacob Zuma. The terms of the agreement allegedly stated that if CAD House were the “effective cause” of Transnet—a large South African rail, port and pipeline company majority-owned by the South African government—signing a contract with SAP worth ZAR 100 million or more, CAD House would receive a 10% commission.In the following year, SAP paid CAD House ZAR 99.9 million, suggesting SAP used CAD House to drive sales of approximately one billion rand to Transnet. SAP has denied the arrangement was a kickback agreement.
SAP said in July 2017 that four South African managers were put on leave after these reports, and that an independent investigation is ongoing.
On 26 October 2017, SAP self-reported preliminary results of its investigations to the U.S. Department of Justice and Securities and Exchange Commission. SAP's internal investigation, covering all business with South Africa's public sector since 2010, continues and SAP indicated that it expects to make further disclosures in future.
08 March 2018 - SAP disclosed that it discovered additional evidence of misconduct and FCPA violations that may have occurred between December 2014 and June 2017. SAP's South African unit allegedly made payments totaling USD 9.5 million to three companies affiliated with the Gupta family in return for securing contracts with state-owned companies Transnet and Eskom. The Gupta family was close friends of former President Jacob Zuma and under investigation for alleged corruption.
26 March 2018 - South Africa's anti-corruption agency has confirmed that it is also looking into a 2016 USD 60 million government contract with SAP for the provision of IT and support services to the Department of Water and Sanitation (DWS), on suspicion that due process was not followed in the bidding and awards process. In light of SAP's admitted misconduct on other deals, the agency is acting on an anonymous tip and looking into the matter. SAP is aware of this contract, which forms part of the broader ongoing SAP investigation. The anonymous letter received by the anti-graft agency also alleged the contract was unnecessary because existing DWS licenses with SAP covered the same services.
On 6 September 2018, a formal investigation into the DWS contract with the SAP was approved by South African President.