ABB ABB Ltd

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)

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