Eskom says the robotics firm ABB South Africa’s financial settlement is a continuation of a long series of the power utility’s recoveries including the recent R1.1 billion recovered from US-based consultancy McKinsey.
The R1.5 billion recovered from ABB South Africa through a contract which Eskom had irregularly awarded is expected to add only 2.5% to the reduction of the power utility’s huge debt.
During a virtual briefing on Friday, Eskom said an agreement had been reached between itself and the Special Investigating Unit and ABB South Africa.
Under the agreement, ABB will pay part of the R3.1 billion payment already made to the company.
“We have recovered R171 million from Deloitte Consulting. we are pursuing a claim of R95 million from PwC. We have recently launched a civil claim to recover R3.8 billion from members of the Gupta family other Gupta associates and that claim is making its way through the courts” explains Eskom CEO André de Ruyter.
‘Biggest recovery of funds lost to corruption’
Meanwhile, Justice Minister Ronald Lamola has described the Special Investigating Unit (SIU)’s recovery of money from a contract that Eskom had awarded irregularly as the unit’s biggest recovery of funds lost to corruption and maladministration.
The unit worked with the Hawks and the FBI in the US in its investigations that found the contract awarded to the South African branch of Swiss robotics firm ABB had been irregularly awarded.
Lamola welcomes the recovery “It sends a very clear message to the people of our country about the commitment of the government to assist the SIU and all other law enforcement agencies because we view as government that corruption and maladministration are inconsistent with the rule of law and the fundamental values of our Constitution and we have to ensure that whoever is responsible for all the malfeasance has to be brought to book and must account and all monies went through malfeasance from either Eskom, Transnet or any state parastatal or any government department is recovered.”