SAP sued over Zimbabwean sanctions ruse

German software giant SAP is accused by its former Zimbabwean partner of using code names and setting up a shelf company in Botswana to circumvent EU sanctions imposed on Harare in 2002. The Sunday Times reports that Zimbabwe-based Twenty Third Century Systems (TTCS), which was a partner of SAP, is claiming, in the Supreme Court of Appeal, about R1bn from the German company for loss of revenue due to SAP terminating their agreements in 2019. In 2021, TTCS wrote to the US Stock Exchange claiming that SAP Africa had been involved in an elaborate scheme to violate and circumvent the EU sanctions by continuing to do business with that country’s government, its entities and other companies in the country. In the complaint, TTCS managing executive Ernest Zvinavashe said that during 2012, an SAP representative, Tarne de Beer, met their then-executive Cleopas Manyika and advised that SAP wanted to continue doing business in Zimbabwe, but through an entity to be registered by TTCS in Botswana. ‘This was a clear effort on the part of SAP to avoid having to comply with the various sanctions and to continue doing business in Zimbabwe despite the sanctions,’ said Zvinavashe in the complaint. SAP, which this year was fined by US authorities for alleged corrupt dealings in countries such as SA, Zimbabwe, Tanzania, Kenya, Malawi and others, agreed to pay back more than $220m in disgorgement and criminal conduct penalties.