A STEP TOWARDS ACCOUNTABILITY FOR STATE CAPTURE CORRUPTION AT
ESKOM: ABB TO PAY OVER R2.5 BILLION IN PUNITIVE REPARATIONS TO SOUTH
AFRICA
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 twopronged 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.
The settlement has the immediate benefit of saving costs in the context of a protracted trial
against the corporate entity (ABB Ltd), and securing funds upfront for the fiscus while ongoing
criminal investigations into implicated persons continue. The money, once paid into CARA,
will be used as restitution for victims, and to assist in building South Africa’s capacity and
resources in its ongoing fight against serious corruption.
It needs to be made clear, however, that this settlement does not indemnify any individuals
involved in criminal conduct, including directors, staff and contractors of ABB. The NPA will
continue to pursue these criminal prosecutions, with the support of ABB who has committed
to ongoing collaboration to ensure accountability for the crimes allegedly committed by its
employees.
