Engineering giant ABB to fork out R2,5 billion for state capture involvement

News filtering through to BusinessTech Africa is that the National Prosecuting Authority said ABB is expected to fork out R2,5 billion for taking part in state capture.

ABB is a Swiss engineering company, fully known as Asea Brown Boveri (ABB), and is expected to part ways with a staggering R2.5 billion in “punitive reparations to South Africa”.

The company, ABB operates in South Africa and it was allegedly irregularly awarded a lucrative control and instrumentation contract at Eskom’s Kusile Power Station in 2015 after allegedly colluding with Eskom officials – reports GCIS.

“This settlement represents a bold and innovative step towards accountability and justice for alleged offenders, particularly in the form of restitution for the serious crimes committed at Eskom during the state capture period,” said the NPA.

“This agreement was reached in line with Section 64(e) of the Prevention of Organised Crime Act (POCA). It is reflective of the NPA’s two-pronged strategy to deal with corruption by prosecuting perpetrators and recovering stolen money. This punitive amount is in addition to the R1.6 billion that ABB paid to Eskom in 2020.”

According to the report as sighted by BusinessTech Africa, this settlement is expected to be paid into South Africa’s Criminal Asset Recovery Account (CARA) within two months days from today, Thursday, December 01.

The South African prosecutorial body stated that the company has “acknowledged liability and taken responsibility for the alleged criminal conduct” that occurred.

“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,” continued the NPA.

“The settlement agreement makes it clear that the [NPA 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 timeframe, and full cooperation and disclosures as per the agreement.”

“As a result, ABB has been forthcoming in cooperating with law enforcement agencies conducting the 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 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 persons continue. 

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