Japanese conglomerate Hitachi Ltd paid African National Congress (ANC) front company Chancellor House a $1m “success fee” and $5m in “dividends” in connection with contracts to build the Medupi and Kusile power stations‚ the US Securities and Exchange Commission (SEC) charged on Monday.
The watchdog said Hitachi had agreed to pay $19m to settle the charges‚ without admitting or denying the allegations.
It would be permanently enjoined from future violations. The settlement is subject to court approval.
Chancellor House was‚ until last year‚ empowerment partner of Hitachi subsidiary Hitachi Power Africa‚ in which it was a 25% shareholder.
In 2007‚ the company won Eskom contracts valued at R38bn at the time.
Hitachi fined in US for paying ANC ‘front’
Japanese conglomerate Hitachi Ltd paid African National Congress (ANC) front company Chancellor House a $1m “success fee” and $5m in “dividends” in connection with contracts to build the Medupi and Kusile power stations‚ the US Securities and Exchange Commission (SEC) charged on Monday.
The watchdog said Hitachi had agreed to pay $19m to settle the charges‚ without admitting or denying the allegations.
It would be permanently enjoined from future violations. The settlement is subject to court approval.
Chancellor House was‚ until last year‚ empowerment partner of Hitachi subsidiary Hitachi Power Africa‚ in which it was a 25% shareholder.
In 2007‚ the company won Eskom contracts valued at R38bn at the time.
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