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

The settlement arises out of the applicants (SIU and the Minister of Water and Sanitation) 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 the Department of Water and Sanitation 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. 

The parties have since agreed before The Tribunal that SAP will 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.