U.S. says Swiss engineering group ABB to pay over $315 million to resolve bribery case




 

By Kanishka Singh

WASHINGTON (Reuters) -Swiss engineering and technology group ABB Ltd agreed to pay more than $315 million to resolve an investigation into a bribery case at a South African state-owned energy company, the U.S. Justice Department said on Friday.

The Justice Department said its resolution was coordinated with prosecutorial authorities in South Africa and Switzerland, as well as the U.S. Securities and Exchange Commission (SEC).

ABB subsidiaries also pleaded guilty to one count of conspiracy to violate the anti-bribery provisions of the U.S. Foreign Corrupt Practices Act (FCPA), the Justice Department said in a statement.

ABB was investigated for and found guilty of improper payments and other compliance issues at the Kusile power station, in a wide-scale investigation into state corruption concluded in June 2022.

"ABB bribed a high-ranking official at South Africa's state-owned energy company in order to corruptly obtain confidential information and win lucrative contracts," the Justice Department added.

ABB and South Africa's National Prosecuting Authority (NPA) also reached an agreement that the company will pay reparations for its involvement in state corruption, the crime agency said on Thursday.

"This is the department's first coordinated resolution with authorities in South Africa, where much of ABB's criminal scheme was carried out," the U.S. Justice Department said.

Between 2014 and 2017, ABB, through certain of its subsidiaries, paid bribes to a South African government official who was a high-ranking employee at the state-owned energy company, Eskom Holdings Limited, to obtain business advantages in connection with the award of multiple contracts, the Justice Department said.

In September, ABB said it was setting aside a provision of around $325 million to cover costs related to investigations surrounding the Kusile power plant in South Africa.

"We take the Kusile matter very seriously. Since it was reported, ABB has cooperated fully with all authorities and spent considerable time and effort - including launching a new code of conduct, educating employees and implementing an enhanced control system - to prevent something similar from happening again," ABB Chief Executive Björn Rosengren said on Friday.

(Reporting by Kanishka Singh in Washington; editing by Diane Craft and Marguerita Choy)

COMMENTS

More Related News

North Carolina man pleads guilty to bomb threat near U.S. Capitol in 2021
North Carolina man pleads guilty to bomb threat near U.S. Capitol in 2021

A North Carolina man who faced criminal charges after claiming he had a bomb in his truck parked near the U.S. Capitol in 2021 pleaded guilty on Friday, the ...

DOJ warns against protests turning violent ahead of Tyre Nichols footage release
DOJ warns against protests turning violent ahead of Tyre Nichols footage release
  • US
  • 2023-01-27 17:40:16Z

Nichols' family and their lawyers have said the video shows five Memphis police officers, all of whom are Black, beating the 29-year-old man for three...

Baltimore police using less force amid ongoing reform effort
Baltimore police using less force amid ongoing reform effort
  • US
  • 2023-01-27 12:21:01Z

BALTIMORE (AP) - Since the Baltimore Police Department started overhauling its practices through a series of court-ordered reforms in 2017, […] The post...

Ecopetrol says CEO Bayon to leave his post on March 31
Ecopetrol says CEO Bayon to leave his post on March 31

Colombian majority-state-owned energy company Ecopetrol on Thursday said Chief Executive Felipe Bayon will leave his post on March 31, following more than...

US authorities seize servers for Hive ransomware group
US authorities seize servers for Hive ransomware group
  • US
  • 2023-01-26 18:38:36Z

'We hacked the hackers,' says deputy attorney general of group that has received over $100m in extortion payments from victims

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy