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Public Protector again asked to open investigation into SA firms linked to Hitachi

The Medupi Power Station near Lephalale. Picture Credit: Gallo Images
The Medupi Power Station near Lephalale. Picture Credit: Gallo Images

The Helen Suzman Foundation has formally asked the Public Protector‚ Advocate Thuli Madonsela‚ to investigate any unlawfulness relating to the allegations against Eskom‚ Chancellor House‚ and the ANC following the United States Securities Exchange Commission settlement order against Hitachi. This follows a request by the DA earlier this week.

Hitachi allegedly engaged in fraudulent and other unlawful activities in order to secure lucrative contracts relating to the Medupi and Kusile power plants. The SEC alleges that Hitachi acted with the assistance of a front company for the ANC‚ namely‚ Chancellor House. Rather than defend itself in court‚ Hitachi settled for USD 19 million.

In a statement‚ the Helen Suzman Foundation said it believes that “there are prima facie grounds to warrant initiation of an investigation‚ under section 182 of the Constitution‚ by the office of the Public Protector of these and related allegations“.

“If the Securities Exchange Commission allegations are correct‚ those implicated are likely to have contravened sections of‚ inter alia‚ the Constitution‚ Public Finance Management Act‚ 1999‚ Prevention and Combating of Corrupt Activities Act‚ 2004‚ Prevention of Organised Crime Act‚ 1999‚ and Companies Act‚ 2008. Particularly concerning is the apparent overlap between the private financial interests of members of the government and the ANC and the possible misuse of state funds.

“The HSF trusts that the office of the Public Protector will take all necessary steps to investigate the allegations in the Complaint and‚ if required‚ take the appropriate remedial action.”

Democratic Alliance (DA) leader Mmusi Maimane said yesterday that he had laid charges against Chancellor House‚ in terms of the Prevention of Corrupt Activities Act‚ and had also asked for a World Bank investigation.

“We have further lodged a complaint with the World Bank who provided a loan to Eskom to fund the construction of Medupi and Kusile‚ effectively bankrolling the ANC through their share in Hitachi via Chancellor House.

“In the light of recent developments we believe the World Bank should invoke their power to demand financial restitution‚ in this case from the ANC‚ in cases where loans where employed to fund fraudulent‚ corrupt‚ collusive‚ coercive or obstructive practices‚” Maimane said.

The complaint to the World Bank was in addition to the complaint the DA submitted to the Public Protector on Tuesday‚ Maimane said.

“We have urged the Public Protector to conduct a full investigation into the circumstances surrounding the awarding of the contract to Hitachi.”

 

 

 

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