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ABB agrees to refund Eskom $105mn

SOUTH AFRICA ABB has agreed to pay back ZAR1.56bn de Ruyter.
($105mn) it had received from Eskom for what ABB’s contract for control and instrumen-
have proved to be fraudulent tender payments tation (C&I) work at Kusile was awarded in
related to the construction of the Kusile Power April 2015. At ZAR2.24bn ($150mn), it was
Station. ZAR324mn ($22mn) more than the lowest bid-
The Swiss firm and Eskom have agreed to the der but ABB won the contract based on a prom-
payment after South Africa’s Special Investigat- ised ability to accelerate delivery.
ing Unit (SIU) found evidence of unlawful and “As subsequent events have shown, this was
corrupt contracts, the Daily Maverick reported. not the case,” says De Ruyter. Eskom ended up
The SIU led an investigation that also paying ABB ZAR3.1bn ($208mn) in total.
included the US Securities and Exchange Com- “We accept that ABB has performed work
mission, the FBI and the US Department of for which we received value,” says De Ruyter, “so
Justice, Andy Mothibi, head of the SIU, said last we have not claimed back the value of the entire
week contract.”
The SIU began its probe in 2018 after SA However, at 0.25% of Eskom’s total debt of
President Cyril Ramaphosa signed Proclamation ZAR480bn ($32mn), this will not make a major
R11 allowing SIU to subpoena documents and dent. “It is helpful in easing our liquidity con-
witnesses, which Eskom’s own internal forensic straints, that is all,” says De Ruyter.
investigators do not. “This is an example of the practical actions
The investigation is part of Eskom’s attempts that are being taken to bring money back into
to recover up to ZAR3bn ($201mn) in so-called Eskom’s coffers. We need to ensure more of this
irregular expenditure over the last 10 years at work is being done and intensified,” said Minister
Kusile. of Public Enterprises Pravin Gordhan.
The ABB deal follows McKinsey’s recent “This is a small contribution to the debt pot,
agreement to pay back ZAR650mn ($44mn) but the message to firms that have been involved
related to Transnet and SAA contracts. This is in in corruption is that now is the time to approach
in addition to ZAR1bn ($67mn) in consulting the SIU and make a voluntary disclosure,” he
fees it offered to repay in 2017. Deloitte has also says. “If not, at some point … you will face the
agreed to repay ZAR150mn ($10mn) following music.”
an “irregular procurement process”. “Our challenge is that the work related to
Eskom has also issued PwC with a ZAR95mn C&I at Kusile is 90% complete,” says De Ruyter.
($6mn) demand relating to consulting fees “To approach the market for a new contractor is
incurred in 2017 and it has launched civil claims likely to cause a four-year delay at Kusile and will
to recover ZAR3.8bn ($255mn) from the Gupta open Eskom up to damages claims worth [about]
family and their associates. ZAR1bn ($67mn) from other contractors forced
As well as Kusile, “we will follow up on all the to stand and wait while the new technology is
irregular contracts at Medupi. We will not take implemented.”™
our foot off the pedal,” said Eskom CEO André

RENEWABLES

Nigeria opens EU-supported

solar off-grid projects

POLAND THE Nigerian government has said it wants were conceived under a technical assistance
solar energy to improve access-to-power in rural grant initiative funded by the European Union
areas as it opens a number of Solar Nigeria power (EU).
projects across the country. He was speaking as he opened a 78-kW
Nigerian Power Minister Sale Mamman said project at the Maiha Cottage Hospital, 78-kW
that the push to off-grid solar and distributed at Gulak Cottage Hospital, 104-kW at Garkida
energy projects formed part of the country’s Hospital, 104-kW at Michika General Hospital
commitment to combating climate change, and and 104-kW at Mubi General Hospital.
was supported by European donors. Others projects included 208-kW at the
He said that the projects, which were built at a College of Health Technology, Mubi, 36-kW at
number of medical and educational institutions, Michika Maternity Hospital and 36-kW at PHC

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