Eskom and the Special Investigating Unit recover R1.56 billion in overpayments made to ABB South Africa
11 December 2020
After lengthy investigation and negotiations, Eskom and the Special Investigating Unit have reached an agreement with ABB South Africa in terms of which ABB South Africa will pay Eskom R1.56 billion in full and final settlement of an overpayment dispute relating to a contract unlawfully awarded through corrupt means for work at the Kusile power station. The settlement is inclusive of the capital amount and interest. The agreement will be subject to the review of the High Court in due course.
Advocate Andy Mothibi, head of the SIU said: “We are delighted at this settlement, which is an important vindication of the tireless efforts of the SIU investigators working in close co-operation with the Eskom and ABB teams.”
The investigation arose as a result of ABB’s voluntary disclosure of alleged collusion with certain Eskom officials to irregularly award ABB a R2.2 billion Control & Instrumentation (C&I) contract for the Kusile power station during March 2015.
The s ettlement agreement is a culmination of years of work by the parties, as well as detailed investigations by the Special Investigations Tribunal (SIU) in terms of the Proclamation R11 of 2018. With regard to this and other contracts in which evidence of criminal activity has been established, Eskom and the SIU have laid dozens of criminal cases with the law enforcement agencies.