Eskom supplier implicated in state capture corruption to pay back R2.5 billion

3 years ago 1

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The National Prosecuting Authority says its Investigating Directorate (ID) has secured over R2.5 billion in punitive reparations to South Africa and Eskom from Asea Brown Boveri (ABB).

It finalised a comprehensive settlement agreement with the Swiss multinational corporation as part of its ongoing investigation into corruption at Eskom.

The punitive amount is in addition to the R1.6 billion ABB paid Eskom in 2020.

ABB was implicated in state capture-era corruption, for which it has acknowledged liability and taken responsibility for the alleged criminal conduct of its employees.

“As a result, ABB has been forthcoming in cooperating with law enforcement agencies conducting the investigations into such alleged conduct,” the NPA said in a statement.

“It has assisted the NPA’s ID to secure evidence and key witnesses which have formed an essential part of the NPA’s ongoing investigations into the company’s alleged offences. It will continue to do so as part of the agreement.”

While the settlement agreement was negotiated with partner countries such as the US, Switzerland, and Germany, South Africa will get the bulk of the settlement due to the nature of the crimes and the negative impact on its people.

Payment to South Africa’s Criminal Asset Recovery Account must be made within 60 days from 1 December 2022.

It will be used as restitution for state capture victims and to build upon South Africa’s capacity and resources for its fight against 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,” the NPA said.

“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.”