‘Probe Hitachi allegations now’

24/08/2015 Public Protector, Adv Thuli Madonsela, delivers her report on an investigation into allegationsof maladministration relating to financial mismanagement, tender irregularities and appointment irregularities against the Passanger Rail Agency of South Africa (PRASA). Picture: Phill Magakoe

24/08/2015 Public Protector, Adv Thuli Madonsela, delivers her report on an investigation into allegationsof maladministration relating to financial mismanagement, tender irregularities and appointment irregularities against the Passanger Rail Agency of South Africa (PRASA). Picture: Phill Magakoe

Published Oct 2, 2015

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Johannesburg - South Africa’s Helen Suzman Foundation has asked Public Protector Thuli Madonsela to investigate allegations that Hitachi made improper payments to the ruling African National Congress to help it win contracts related to the construction of two power plants in the country.

“We requested that all the allegations against organs of state and private companies be investigated,” Dani Cohen, a director at the Johannesburg-based human rights group, said in a statement on Thursday.

Hitachi sold a 25-percent stake in its South African unit to Chancellor House Holdings, an investment arm of the ANC, allowing the company and the party to share profits. Hitachi paid Chancellor House $5 million from the contracts and another $1 million in “success fees”, the US Securities Exchange Commission said in a statement on Monday.

Hitachi neither admitted guilt nor denied the allegations, the SEC said in a statement. The ANC has denied any involvement in the transaction.

Hitachi Power Africa won R38.5 billion worth of contracts from state electricity provider Eskom to install boilers at the Medupi and Kusile coal-fired power-plant projects.

The completion of the 4 788 MW Medupi facility has been delayed by about four years because companies including Hitachi didn’t complete work on time. This has contributed to electricity cuts that fed into a 1.3 percent economic contraction in the second quarter.

BLOOMBERG

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