SAP ordered to repay DWS after contracts set aside
Multinational software company Systems Applications Products (SAP) has been ordered to repay the Department of Water and Sanitation (DWS) R413-million after two software licence and support agreement contracts to the value of more than R1-billion were declared constitutionally invalid and set aside by the Special Tribunal.
A Special Investigating Unit (SIU) probe into the affairs of DWS revealed that the department irregularly concluded software licence and support agreements between 2015 and 2016 with SAP.
The R413-million represents the total amount paid by DWS to SAP pursuant to the 2015 and 2016 software licence and support contracts.
According to the order, SAP is required to pay DWS R263.28-million within five days of the date of the order, with any remainder to be paid after the Special Tribunal’s determination of whether any further amount should be deducted from the amount due.
The disputed amount of about R83-million for third-party costs incurred by SAP and the no-profit principle will be adjudicated on by the Special Tribunal and a further order made as to the repayment of any portion of the R83-million to DWS.
DWS may not use any of the software licensed under the 2015 and 2016 licence agreements.
The outcome of the Special Tribunal order is a continuation of implementation of the SIU investigation outcomes and consequence management to recover financial losses suffered by State institutions, the DWS said in a statement.
Other matters enrolled in the Special Tribunal are still awaiting adjudication, to the combined value of R2.1-billion, and will result in further recoveries for the State.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Showroom
Design, Construction and Maintenance of Site Erected, Welded Bulk Storage Tanks for the Petrochemical, LNG, Ammonia and Sustainable fuel Sectors.
VISIT SHOWROOM
FLANDERS Southern Africa provides integrated solutions for mining and industrial operations, covering field services, automation, electrification,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
