German IT giant T-Systems scored one of the biggest Gupta-linked State Capture contracts in South Africa, with links to both Transnet and Eskom. Despite glaring evidence available in the public domain, the findings of the Zondo Commission and a fresh ...
to the North Gauteng High Court in October 2017 to set aside the decision to award T-Systems the contract.
While T-Systems initially opposed the application, it withdrew this in 2018. Judge R Keightley of the North Gauteng High Courtthat the awarding of the contract to T-Systems was unlawful and irregular, stating that “to permit such a tainted decision to stand, would be inimical to the constitutional requirement that tender processes should be fair, equitable, transparent, competitive and cost-effective”.
At the time when T-Systems was receiving income derived from the contract extensions with Transnet, it not only sub-contracted the rental and sales aspects of the business to Zestilor, but it also enabled the diversion of Transnet funds to the Gupta Enterprise via other avenues. It did this through its supplier development partner, Sechaba.
The similarities are indeed striking: the MSA between T-Systems and Eskom was concluded in 2009 and originally set to run from January 2010 to December 2014. This MSA was also irregularly extended for a further five years until 2019 with a series of contract modifications, mirroring what transpired at Transnet.
In the compliance report, the company recognised that Essa had a “strong network to Eskom officials and its stakeholders”. The same internal T-Systems compliance report also noted that Salim Essa introduced T-Systems decision-makers to “several local and start-up companies” and he requested that T-Systems “provide these companies with the opportunity to be included in the value chain where possible”.
In early September 2022, it was confirmed that the German public prosecutor’s office in Frankfurt is undertaking ainto T-System’s contracts and conduct in relation to State Capture in South Africa.
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