Kusile Power Station in Mpumalanga, South Africa: chimneys and boiler units seen across open fields. — Photo: JMK, CC BY-SA 4.0

Kusile Power Station Cabling Contract – Delivery via Intermediaries

Installation included. So were more than $37 million in payments to third-party service providers.

Sold2015–2017National

more than $37M≈ €33.1MAs stated in the source: more than $37 million

Already sold, to ABB Ltd, in 2015–2017. Nothing on Lobay is for sale.

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Seller

Role: a high-ranking government official at Eskom
Institution: Eskom (state-owned electricity provider)
Country: South Africa

Item specifics

Condition	Penalty order accepted, final (Swiss Attorney General, 2 December 2022)
Location	Eskom's Kusile Power Station, South Africa
Seller	A high-ranking government official at Eskom (unnamed)
Winning bidder	ABB Ltd
Category	Energy
Sold	2015–2017
Payment method	Through third-party service providers close to the official
Returns	No returns. Penalties: CHF 4 million (Swiss AG), $315 million (DOJ), $75 million (SEC)

Description

What the bribe bought

The SEC ordered more than $72 million in disgorgement of ill-gotten gains, deemed satisfied by ABB's reimbursement of its ill-gotten gains to the South African government. The bribes secured a $160 million contract to provide cabling and installation work at Eskom's Kusile Power Station.

Return on bribe: Every $1 of bribes earned about $1.95.Computed from the stated figures, both given as “more than”.

What happened

From 2015 through 2017, ABB executives in Switzerland and South Africa colluded with a high-ranking government official at Eskom. ABB paid third-party service providers more than $37 million to bribe the official. In return, ABB obtained the Kusile cabling and installation contract. On 2 December 2022 the Swiss Attorney General issued a penalty order, accepted by ABB, with a fine of CHF 4 million. In parallel, the DOJ imposed a $315 million criminal penalty and the SEC a $75 million civil penalty.

Read the article

Vorwurf der Korruption - Bundesanwaltschaft büsst ABB mit vier Millionen Franken · SRF (sda) · Article in German

Official record

ABB Settles SEC Charges That It Engaged in Bribery Scheme in South Africa · US Securities and Exchange Commission

Shipping & returns

Authority	Kind	Amount	Year
Bundesanwaltschaft (Office of the Attorney General of Switzerland)	fine	CHF 4M≈ €4.33MAs stated in the source: Busse von 4 Millionen Schweizer Franken	2022
US Department of Justice	criminal penalty	$315M≈ €282MAs stated in the source: the DOJ fined ABB $315 million to settle criminal charges	2022
US Securities and Exchange Commission	civil penalty	$75M≈ €67MAs stated in the source: a $75 million civil penalty	2022