By Lehlohonolo Lehana.
Multinational engineering firm ASEA Brown Boveri (ABB) has agreed to pay over R2.5 billion in punitive reparations to SA for “serious crimes” committed at Eskom
National Prosecuting Authority says its Investigating Directorate (ID) has 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.”
ABB was awarded a R2 billion contract in 2015 to install control and instrumentation (C&I) systems at the troubled Kusile power station. The station has suffered time delays, cost overruns running into the billions and design defects, and problems at the station have regularly contributed to load shedding.
In October, the faulty installation of an exhaust vent resulted in ash particles building up inside a massive duct over nearly five years, which caused the collapse of a section of the pipe at Kusile.
The Kusile deal resulted in ABB paying Impulse International R549 million in 2016 and 2017 – when former acting Eskom CEO Mathsela Koko’s stepdaughter, Koketso Aren (neé Choma), was a shareholder of Impulse.
Koko, his wife, Mosima, and his stepdaughters, Koketso and Thato Choma, Thabo Mokwena, a former employee of the State Security Agency, Eskom’s former project manager for Kusile, Frans Sithole, lawyer and alleged Koko fixer, Johannes Coetzee, and Koko associate Watson Seswai were arrested in late October and appeared in the Middelburg Regional Court on charges of fraud, corruption, and money laundering.
They were all granted bail, ranging from R70 000 to R300 000, and will appear in court again on 23 March.