NewsPREMIUM

Gupta firm loses R2.5-billion contract

Momentum has made headlines after refusing to pay out a R2.4m life policy.
Momentum has made headlines after refusing to pay out a R2.4m life policy. (123RF)

Another multibillion-rand contract awarded to Gupta-linked companies has been cancelled by Transnet following an instruction from the National Treasury.

A R2.5-billion contract awarded to T-Systems and its local partner, Gupta-linked Sechaba Computer Services, was revoked because the Treasury found that it was "incorrectly and unlawfully awarded".

Transnet awarded T-Systems a five- year IT data service contract worth R500-million a year in March, despite its group executive recommending the contract be awarded to Gijima, owned by billionaire Robert Gumede, after a competitive bidding process.

Treasury spokesman Mayihlome Tshwete said yesterday: "I can confirm an opinion was issued, but ultimately the responsibility rests with Transnet."

T-Systems is the implementing agent of SAP, the German software giant which this week admitted to US authorities that it paid over R100-million in "commissions" to Gupta-linked companies to secure lucrative contracts with Transnet and Eskom.

T-Systems said it conducted all business in an above-board manner.

Spokesman Gert Schoonbee said the company was challenging the Treasury's decision.

He revealed that T-Systems had appointed a law firm to investigate the conduct of the company and its partners.