ABB to Pay $104 Million to Eskom in South Africa Corruption Case
December 11 2020 - 9:10AM
Dow Jones News
By Joshua Stein
ABB Ltd. said Friday that it has settled its dispute with South
African utility company Eskom Holdings SOC Ltd. over the Kusile
power plant, after an investigation revealed last October that it
had found evidence of corruption and improper payments from ABB to
Eskom.
The Switzerland-based engineering company will pay $104 million
to Eskom following allegations of improper payments and other
compliance issues. It is also resolving an investigation by the
Special Investigating Unit in South Africa. The majority of the
payment has been included in financials disclosed by ABB in the
last 15 months, but the company will book an additional $30 million
on operational earnings before interest, taxes and amortization,
and a hit on cash flow of around $110 million in relation to the
settlement.
ABB said it will continue to cooperate with authorities in South
Africa, the U.S., Germany and Switzerland.
Write to Joshua Stein at joshua.stein@wsj.com
(END) Dow Jones Newswires
December 11, 2020 08:55 ET (13:55 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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