South African President Cyril Ramaphosa on Thursday ramped up an anti-corruption drive, authorizing an investigation of alleged wrongdoing in the national water department's dealings with German software firm SAP.
New inquiries will look into public and private sector involvement in the awarding of tenders and contracts, Ramaphosa's office said.
The water and sanitation department will be investigated for "alleged serious maladministration and unlawful expenditure of public money" for IT services from SAP, it said.
Investigators will also probe "any improper or unlawful conduct" by SAP, according to the presidency. The investigation will focus on the period from January 2015 to now.
SAP said it is cooperating with authorities and is reviewing all public sector contracts dating back to 2010.
"Our policy is, and always will be, to carry out all company activities in accordance with the letter and spirit of applicable laws in the more than 180 countries in which we operate," the company said in a statement.
Separately, a commission is probing allegations of widespread corruption under the government of former President Jacob Zuma.
Ramaphosa became president after Zuma resigned in February amid growing national outrage.