A step towards accountability for State Capture corruption at Eskom: ABB to pay over R2.5 billion in punitive reparations to SA
1 December 2022
As part of its ongoing criminal investigation into complex corruption at Eskom, the NPA’s Investigating Directorate (ID) has finalised a comprehensive settlement agreement with ABB to pay over R2,5 billion in punitive reparations to South Africa. 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.
The payment must be made into South Africa’s Criminal Asset Recovery Account (CARA) within 60 days from 01 December 2022. 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 through prosecuting perpetrators and recovering the stolen money. This punitive amount is in addition to the R1.6 billion that ABB paid to Eskom in 2020.
ABB Ltd, an international company with a large South African footprint, was implicated in state capture era corruption. 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 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.
This settlement agreement was negotiated with partner countries, including the USA, Switzerland, Italy, and Germany. South Africa is getting the bulk of the settlement amount due to the nature of the crimes and the negative impact on South Africa and its people.