System Applications Products ordered to pay DWS R81.5m

In a statement on Thursday, 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.

The Department of Water and Sanitation (DWS) has welcomed a ruling by the Special Tribunal, which ordered the System Applications Products (SAP) (Pty) Ltd to pay the department an amount of R81.5 million within five court days from Thursday.

The settlement arises out of the applicants (Special Investigating Unit and Water and Sanitation Minister) having reached a full and final settlement of the remainder of the disputes and matters between them, relating to the license agreements entered into between 2015 and 2016.

In 2015 and 2016, the Department of Water and Sanitation paid SAP an amount of R413 121 283.40, but the Tribunal has ruled that the two agreements did not comply with the provisions of the Constitution, the Public Finance Management Act, Treasury Regulations or the Department’s Supply Chain Management policies.

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. 

In a statement on Thursday, 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. 

(With Inputs from South African Government Press Release)