ANC denies involvement in Hitachi, Chancellor House dealings

ANC treasurer general Zweli Mkhize on Tuesday sought to distance the ruling party from the charges by the US Securities and Exchange Commission (SEC) that have seen Japanese conglomerate Hitachi pay a $19-million settlement fee.

“The ANC categorically states that the organisation was not involved, implicated nor approached to answer on anything relating to the charges brought against Hitachi. The ANC was further not involved in the transaction between Hitachi and Chancellor House nor do we have any information on any impropriety relating to the award of the Medupi or Kusile contracts to Hitachi,” Mkhize said.

The US authority charged that Hitachi paid Chancellor House a “success fee” – a term often used as a euphemism for a bribe – of $1-million plus $5-million in connection with contracts to build the Medupi and Kusile power stations.

It said Hitachi had paid the settlement fee without admitting or denying the charges. Chancellor House was until last year the local empowerment partner of Hitachi’s subsidiary Hitachi Power Africa, which won contracts worth some R38-billion from Eskom.

The deals caused considerable political controversy but senior ANC figures long insisted it was above board. Last year the ruling party finally divested from Chancellor House but by that time millions in dividends had already been paid to the company.

The SEC in its statement described Chancellor House as “a politically connected front company” and said the deal with Hitachi held significant benefits for the ANC. It faulted Hitachi for lax internal controls, charging that it allowed it to pay millions of dollars to the ANC’s funding vehicle.

Mkhize dismissed the arrangement between Hitachi and Chancellor House as “internal”.

He said the party remained committed to clean governance and had therefore at its Mangaung conference in 2012 instructed its National Executive Committee to avoid any potential conflict of interest in the course of party fundraising.

“We will study the outcome of the SEC matter and from that process identify appropriate lessons or actions, if any, to be taken,” he said. – African News Agency 

Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Related stories


Subscribers only

How smuggled gold destined for Dubai or Singapore has links...

Three Malagasy citizens were apprehended at OR Tambo International airport, but now the trail is found to connect to France and Mali

How lottery execs received dubious payments through a private company

The National Lottery Commission is being investigated by the SIU for alleged corruption and maladministration, including suspicious payments made to senior NLC employees between 2016 and 2017

More top stories

R2.3bn VBS trial expected to only begin in 2022

The state is expected to request a 16 week-long trial, as delays stymie progress in the saga.

Spy boss tells how agency was used to detain Zuma’s...

Day two of State Security Agency testimony at the Zondo commission birthed more revelations that point to the former head of state and agents breaking the law

Covax will take excess doses of Covid vaccines off the...

The global initiative plans to deliver two billion doses of Covid-19 vaccines to developing nations

Eastern Cape citizens don’t have to visit the labour department...

This measure, aimed at slowing the spread of Covid-19, may shortly be introduced in other regions.

press releases

Loading latest Press Releases…