11/07/2017 08:05 BST | Updated 11/07/2017 08:05 BST

Gupta Company In 'Kickback Agreement' With Software Giant SAP

It is alleged that a software company paid the Guptas "commissions" to help it score Transnet contracts.

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A loading crane straddles a freight rail track near shipping containers on the opening day of Transnet SOC Ltd.'s new container handling terminal at City Deep inland port in Johannesburg, South Africa, on Thursday, Nov. 26, 2015. Transnet plans to spend as much as 380 billion rand over the next decade to expand and upgrade rail and port capacity in South Africa, the world's biggest manganese producer and the continents largest source of iron ore and coal. Photographer: Karel Prinsloo/Bloomberg via Getty Images

Software giant SAP paid a 10% "commission" to a Gupta-controlled company, in what appears to be a kickback agreement in exchange for fixing contracts for the company at Transnet, amaBhungane and Scorpio revealed on Tuesday.

In 2015, information from the #GuptaLeaks trove of information reportedly shows how SAP signed a "sales commission agreement" with the Gupta-owned company, CAD House which sells 3D printers. In terms of the agreement, if the company was the "effective cause" of SAP being awarded a Transnet contract of R100 million or more, it would be 10 percent.

CAD House reportedly received R99,9 million from SAP over the following year. SAP denied that this was a kickback agreement and said that CAD House had the "necessary skills in terms of positioning our solution".

But amaBhungane and Scorpio reported that CAD House has no experience in marketing or selling SAP software and appears to have been used as a front.

SAP South Africa chief financial officer Deena Pillay reportedly described SAP and CAH House's relationship:

"They're small guys who would go out there, identify business and come to SAP with that opportunity. It's a lever available to SAP to sell its software... We've got a sales force that we employ, so these are agents on the ground... they are an extension of the sales force," she reportedly said.

CAD also appears to be a Gupta front, with money paid by SAP reportedly moving to other Gupta accounts. Millions reportedly flowed to the accounts of Sahara Computers, the Bank of Baroda where the Guptas banked, an obscure Eastern Cape company and three other companies related to Sahara.

Transnet denied any knowledge of CAD House, while the Guptas did not respond to questions.