ABB to pay R2.5bn after Kusile fraud

Swiss multinational engineering company ABB has agreed to pay SA R2.5bn in punitive reparations after being fraudulently awarded a multibillion-rand contract at the Kusile power plant. This is an addition to R1.6bn that ABB paid to Eskom in 2020 after its implication in state-capture era corruption.

The National Prosecuting Authority said in a statement that the payment must be made into SA’s Criminal Assets Recovery Account (CARA) within 60 days from Thursday.

“ABB has acknowledged liability and taken responsibility for the alleged criminal conduct of its employees involving contracts with Eskom.

“As a result, ABB has been forthcoming in co-operating with law enforcement agencies conducting investigations into such alleged conduct.”

SETTLEMENT

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

The NPA said that the settlement will have the immediate benefit of saving costs in the context of a protracted trial against the corporate entity (ABB Ltd), and securing funds upfront for the fiscus while the continuing criminal investigations into implicated people continue.

PROSECUTION

“The money, once paid into CARA, will be used as restitution for victims, and to assist in building SA’s capacity and resources in its ongoing fight against serious corruption.”

The NPA clarified that the settlement does not indemnify any individuals involved in criminal conduct, including directors, staff and contractors of ABB.

“The settlement agreement makes it clear the Investigative Directorate may proceed to prosecute ABB as a corporate entity in the event that ABB breaches any terms of the settlement, including the payment of the agreed amount within the stipulated time frame, and full co-operation and disclosures as per the agreement.”