Multinational ABB to pay R2.5bn to SA for dodgy Eskom Kusile deal

The National Prosecuting Authority’s (NPA) Investigative Directorate (ID) said multinational company ASEA Brown Boveri (ABB) has agreed to pay R2.5 billion in punitive reparations to South Africa for a dodgy Eskom deal.

The ID said the payment forms parts of its ongoing criminal investigation into “serious crimes” committed at the state-owned entity during the state capture-era.

Accountability

It said the punitive amount is in addition to the R1.6 billion that ABB paid to Eskom in 2020.

NPA spokesperson Adv Mthunzi Mhaga said the settlement by the multinational technology group is a “bold and innovative step towards accountability and justice for alleged offenders”.

“The Investigating Directorate has entered into a settlement agreement with ABB Limited in respect of corruption and fraud that was committed at Eskom during the state capture period,” he said.

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Money

Mhaga said the money will be paid into the Criminal Asset Recovery Account (CARA).

“As part of this agreement, they will be cooperating with the Investigating Directorate by providing evidence that will assist in prosecuting and investigating those employees and directors of the company that are implicated in corruption and state capture.”

He said ABB was awarded a controversial R2 billion contract in 2015 to install control and instrumentation systems at Kusile Power Station.

“And as part of the agreement, the company will continue to complete its work at no cost to Eskom or government,” Mhaga said.

Mhaga said the money will be used as restitution for victims, and to assist in building South Africa’s capacity and resources in its fight against serious corruption.

“It needs to be made clear, however, that this settlement does not indemnify any individuals involved in criminal conduct, including directors, staff and contractors of ABB.”

Corruption and state capture

Mhaga added that the recovery of the money is a two-pronged approach and strategy in fighting corruption and state capture by prosecuting the perpetrators.

“It is a clear indication that we will stop at nothing in ensuring that those implicated in state capture and corruption at Eskom are held accountable and the rule of law will be restored and impunity will no longer be a given.”

Mhaga said the payment must be made within 60 days from 1 December 2022.

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