The Asset Forfeiture Unit of the National Prosecuting Authority obtained an R583.8 million restraint order against two former South African employees of ABB, a Swiss engineering group, as well as their wives, and two Eskom subcontractors. The preliminary injunction was issued earlier this month and served on the six accused on Thursday. Mohammed Mooidheen and Vernon Pillay, their wives Raeesa Mooidheen and Aradhna Pillay, and Eskom subcontractors Impulse International and Indiwize Construction are accused of corruption, money laundering, fraud, and forgery.
The NPA has accused ABB SA, the local subsidiary of the Zurich-based multinational, of conspiring with Impulse to inflate contract prices for work at the troubled Kusile power station in 2016 and 2017. According to the prosecution, Mooidheen and Pillay also participated in a “scheme” with former acting Eskom CEO Matshela Koko, in which his stepdaughter Koketso Choma was appointed a shareholder of Impulse. Koko, his wife Mosima, and Choma were arrested in October of last year, and Koko has consistently denied any wrongdoing.
Mooidheen and Pillay, according to the NPA, abused their “senior positions” at ABB SA in order to favour Impulse as a subcontractor. “Pillay and Mooidheen both played a role in the extraordinary approval decisions and the manipulation of procurement and governance processes to the benefit of Impulse, Impulse’s appointment and the payment of excessive rates,” the report stated. “In exchange for these favours, Mooidheen, his wife Raeesa, Pillay, and his wife Aradhna received gratification from Impulse, which was laundered through Indiwize.” The NPA said the gratifications consisted of cash and motor vehicles.
The restraint order comes about four months after ABB SA admitted its involvement in a “multiyear scheme to pay bribes” at Eskom in a landmark US plea deal. In December, the engineering firm entered into a $315 million (R5.5 billion) plea agreement with the US Department of Justice, admitting to receiving confidential, internal Eskom information in order to win tenders. Part of the $315 million comes from a previously announced settlement with Eskom.
The NPA’s action against these individuals and companies is significant because it demonstrates that there will be serious consequences for those who engage in corrupt activities, regardless of how powerful or influential they are. This message is especially important in South Africa, where corruption has been widespread for decades, undermining public trust in government institutions.
Furthermore, the fact that ABB SA has already admitted to its involvement in bribery at Eskom emphasises the need for multinational corporations to be held accountable for their actions in countries where they do business. Companies cannot simply use their financial resources and legal expertise to absolve themselves of responsibility for the harm they cause in the pursuit of profit.
Overall, the restraint order against these individuals and companies is a positive step toward ending corruption in South Africa and holding those who engage in such activities accountable for their actions. It sends a strong message that no one is above the law and that the NPA will not hesitate to pursue those who seek to enrich themselves at the expense of the public.
