Johannesburg - The ruling African National Congress has denied it played any part in the bribe scandal that has seen Hitachi agree to pay a $19 million fine to US authorities.
Hitachi agreed on Monday, a US Securities and Exchange Commission filing shows, to settle a charge that it inaccurately recorded improper payments to the ANC’s investment arm. The payments were related to contracts to build two multi-billion-dollar power plants for Eskom.
Hitachi did not admit wrongdoing in agreeing to the settlement.
In a statement, the US authorities said the deal resolves civil charges against Tokyo-based Hitachi that it violated the US Foreign Corrupt Practices Act by booking about $6 million of improper payments it made as “consulting fees” and other legitimate payments.
In a statement issued by Zweli Mkhize, treasurer general, for the congress, the party said it had noted media reports around the settlement.
“Whilst we have noted that Hitachi has neither denied nor admitted the allegations brought against it, 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 political party also distanced itself from Chancellor House and the deal, saying it was 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. The ANC therefore cannot comment on matters internal to the two parties.”
In an earlier statement, the party said: “The African National Congress has been inundated with enquiries on a matter involving Chancellor House and Hitachi. We would like to advise that such enquiries be directed to parties cited in the transaction. The ANC has not participated in the said transaction and therefore find it difficult to respond to these enquiries."
The ruling party also noted it was committed to clean and accountable governance and welcomed Chancellor House’s decision to divest from Hitachi Power Africa.
The SEC’s claims include that Hitachi “sold a 25 percent stake in [its] South African subsidiary to a company serving as a front for the ANC”. This stake was later sold by Chancellor House.
“This gave the front company and the ANC the ability to share in the profits from any power station contracts that Hitachi secured,” the SEC said.
The ANC notes it is currently engaged in discussions to regulate party funding flowing from the state and the public sector. “We will study the outcome of the SEC matter and from that process identify appropriate lessons or actions, if any, to be taken.”
Meanwhile, the official opposition has said it wants police to investigate Chancellor House. Reuters quoted the Democratic Alliance’s leader Mmusi Maimane as saying the fine “is clearly an admission of de facto corruption that implicates the ANC - a party that has infected government at every level with corruption.
“The DA will therefore be laying criminal charges against Chancellor House for this unlawful activity,” he added.
Economic Freedom Fighter leader Julius Malema has also hit out at the ruling party.
IOL