- The NPA has announced ABB will pay R2.5 billion in punitive damages.
- The damages are related to serious crimes that took place at Eskom during the State Capture period.
- This figure is in addition to a R1.6 billion payment ABB agreed to pay to Eskom in 2020 related to corruption at Kusile Power Station.
The National Prosecuting Authority’s Investigating Directorate has finalised a settlement agreement with multi-national engineering firm ABB.
The settlement comes as a result of an investigation into serious crimes that took place at Eskom during the State Capture period. The settlement will see ABB paying R2.5 billion in punitive reparations.
The Investigating Directorate (ID) has stated that this settlement does not absolve ABB of potential criminal prosecutions.
“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. The NPA will continue to pursue these criminal prosecutions, with the support of ABB who has committed to ongoing collaboration to ensure accountability for the crimes allegedly committed by its employees,” the National Prosecuting Authority (NPA) wrote in a media statement.
The NPA goes on to say that the ID may prosecute ABB as a corporate entity should it breach the terms of the settlement.
Part of those terms includes the payment of the R2.5 billion within 60 days from 1st December. The payment must be made in South Africa’s Criminal Asset Recovery Account in the stipulated time frame.
This money will be used to pay restitution to victims of corruption, building South Africa’s capacity and resources in the fight against corruption.
In July, two former ABB employees as well as their spouses were arrested on corruption charges. These charges were linked to Eskom contracts worth R2.2 billion.
The alleged corruption took place at the Kusile Power Station where ABB is said to have irregularly appointed Impulse International as a subcontractor among other accusations.
ABB has already paid R1.6 billion to Eskom. This amount was paid after ABB voluntarily disclosed that it had colluded with certain officials at Eskom to award it R2.2 billion for a control and instrumentation contract at the Kusile Power Station in 2015.
The latest settlement with the NPA was negotiated with partner countries including USA, Switzerland, Italy and Germany.
“South Africa is getting the bulk of the settlement amount due to the nature of the crimes and the negative impact on South Africa and its people,” the NPA said.
[Image – Rock Staar on Unsplash]
