DA: Hitachi settlement proves Medupi is ‘rotten to the core’

The DA on Monday said reports that power plant contractor Hitachi chose an out of court settlement to quash a corruption case against them justified their suspicions that the company’s securing of the Medupi contract was not above board.

The DA said it was clear that things at Medupi were “rotten to the core”.

“It’s cases like this that cause continuous distrust and great frustration to South Africans as we are constantly being fed information that everything is okay at Medupi and Kusile when it is patently obvious that things are rotten to the core,” said DA MP Natasha Micheal.

She said this was the reason why they had brought applications to allow them to view the contract that Hitachi was given when it clinched the deal.

“It is unacceptable that the country remains in the dark regarding the contract that Hitachi had with Eskom about the power station,” Micheal said.

According to Agence France-Presse, the US Securities and Exchange Commission charged Hitachi for allegedly making “improper payments” which were “inaccurately recorded” under the US Foreign Corrupt Practices Act, to the ANC in connection with the $2-billion Medupi power plant deal.

Despite repeated attempts, the ANC could not be reached for comment. Netwerk24, however, reported that ANC spokesperson Zizi Kodwa said he had not yet seen the statement by the US Securities and Exchange Commission.

It was understood that without admitting or denying the allegations, Hitachi agreed to pay $19-million (R266-million) to settle the case.

AFP said the charges related to the company’s late-2000s sale of a 25% stake in a South African subsidiary to a front company of the ANC, as Hitachi was competing for a deal to build two large power plants.

Michael, however, said Hitachi had performed shoddy work and had been the cause of years of delays in the construction and completion of the station.

“There should have been millions of rands in penalties because of the inferior construction that was done by Hitachi and the years of delay that this caused in the construction of the station,” she said. – News 24

Keep the powerful accountable

Subscribe for R30/mth for the first three months. Cancel anytime.

Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.

Related stories

WELCOME TO YOUR M&G

Already a subscriber? Sign in here

Advertising

Latest stories

July unrest proves sparks of social unrest pose a risk...

Third quarter GDP numbers have interrupted a four quarter economic growth streak because of the July unrest.

Zimbabweans living in South Africa might not be able to...

According to the government’s latest Covid-19 guidelines, anyone coming into Zimbabwe must quarantine in a hotel for 10 days — at their own expense

Fraud case just one example of governance failings at Basketball...

The sport body’s former national administrator allegedly stole money by substituting his own bank account details for a service provider’s

Elderly land claimants wait in vain for restitution

While the government fails to adhere to its own deadlines, the clock is ticking for a group of Black people who were evicted from their land in the decade before apartheid ended
Advertising

press releases

Loading latest Press Releases…
×