Swiss firm ABB to pay South Africa R2.5bn for Kusile state capture deal

01 December 2022 - 13:42
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Kusile power station outside eMalahleni. File photo.
Kusile power station outside eMalahleni. File photo.
Image: Thulani Mbele

Swiss multinational engineering firm ABB has agreed to pay R2.5bn in punitive reparations to South Africa after being fraudulently awarded a multibillion-rand contract at the Kusile power plant.

This is an addition to R1.6bn ABB paid to Eskom in 2020 after its implication in state capture-era corruption.

In a statement the National Prosecuting Authority said the payment must be made into South Africa'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. 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.”

The NPA said the settlement has 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 ongoing criminal investigations into implicated people continue.

“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.”

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