Close Menu
  • Homepage
  • News
  • Cloud & AI
  • ECommerce
  • Entertainment
  • Finance
  • Opinion
  • Podcast
  • Contact

Subscribe to Updates

Get the latest technology news from TechFinancials News about FinTech, Tech, Business, Telecoms and Connected Life.

What's Hot

Pepe Coin Price Forecasts; Floki Inu Latest News & Top Crypto Investment To Make In 2025

2025-08-31

BNB Hits $900 In August As Analysts Give Their Latest Binance Coin Price Predictions

2025-08-31

SUI Price Prediction: Remittix Expected To Rise Over 4,000% This Year After Winning Top Crypto Presale Award

2025-08-31
Facebook X (Twitter) Instagram
Trending
  • Pepe Coin Price Forecasts; Floki Inu Latest News & Top Crypto Investment To Make In 2025
Facebook X (Twitter) Instagram YouTube LinkedIn WhatsApp RSS
TechFinancials
  • Homepage
  • News
  • Cloud & AI
  • ECommerce
  • Entertainment
  • Finance
  • Opinion
  • Podcast
  • Contact
TechFinancials
Home»Breaking News»Hitachi settles with AfDB over Medupi
Breaking News

Hitachi settles with AfDB over Medupi

Gugu LourieBy Gugu Lourie2015-12-03No Comments3 Mins Read
Share Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email Copy Link

The African Development Bank Group (AfDB) on Wednesday announced that it had concluded a settlement agreement with Japanese power company Hitachi into the awarding of the Medupi  contract. NewsAgency


The AfDB, one of Medupi’s funders, said the deal follows a three-year investigation into allegations of sanctionable practices by Hitachi subsidiaries Hitachi Power Europe and Hitachi Power Africa on the Medupi power station boiler works contract.

Eskom awarded the Medupi contract to the consortium of HPE and HPA in October 2007. The contract was for the design, manufacture, supply, erection and commissioning of six coal-fired steam generator units at its Medupi plant at Lephalale in Limpopo Province.

In terms of the settlement Hitachi voluntarily agreed to make a “substantial” financial contribution to the AfDB, which will be used to fund worthy anti-corruption causes on the African continent.

This follows a report on September 28 that, without admitting or denying the allegations, Hitachi agreed to pay the US Securities and Exchange Commission (SEC) $19m (R272m at the current exchange rate) to settle its case into the matter.

Following its probe, the SEC made damning allegations against HPA and the ANC’s investment arm Chancellor House, which include Hitachi’s efforts to get favours during the adjudication of Eskom tenders.

The SEC alleged that Hitachi sold a 25% interest to Chancellor House in the late 2000s to land the lucrative contracts at Eskom’s Medupi and Kusile power stations. Hitachi was awarded tenders worth approximately US$5.6m (R80.5m), earning Chancellor House $1m (R14.37m) in “success fees”.

In addition to the “success fees”, Chancellor House also received $5m in dividends on the project profits.

Under public pressure, in 2014 Hitachi bought back the 25% stake in HPA from Chancellor House.

On Wednesday, the AfDB’s Integrity and Anti-Corruption Department (IACD) alleged that HPE, based in Germany, and its South African subsidiary HPA had engaged in sanctionable practices in order to be awarded the Medupi boiler works contract.

The IACD said that because of the high level of assistance provided by Hitachi, the AfDB has agreed to impose the sanction of debarment for 12 months with conditional release upon HPE and HPA.

“The sanctions imposed under the settlement agreement reflect the level of cooperation provided by Hitachi in the investigation of the Medupi matter, for which the IACD is grateful,” said Anna Bossman, director of the IACD.

Debarment will be terminated as soon as Hitachi enhances its integrity compliance programme to the standard set by the AfDB’s Integrity Compliance Guidelines, the bank said.

Hitachi will also co-operate with the IACD on a variety of matters, including enhancing where necessary its existing integrity compliance programme referenced above.

In October, the World Bank said its own investigation into the matter has found that none of its funds were put at risk by the Hitachi contract for Eskom’s Medupi project. – Fin24

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Gugu Lourie
Gugu Lourie

Related Posts

BankservAfrica Rebrands As PayInc

2025-08-29

KZN’s First Supercar-Centric Luxury Residential Development Unveiled

2025-08-27

Government Pensions Administration Agency CEO Placed On Precautionary Suspension

2025-08-26

Airtel Africa & Vodacom Forge Landmark Infrastructure Partnership

2025-08-12

Volvo Is Opening A Full-Service Dealership In Gqeberha’s Moffett Retail Park

2025-07-17

Rise In E-Commerce Activity Boosts SA’s Supply Chain Sector

2025-07-16

South Africans Spent R20M Via Luno Pay Since Nov 2024 Launch

2025-06-24

Judge Slams RAF For Wasting Millions In Chaotic Court Cases

2025-06-10

Batohi Retracts NPA ‘Infiltration’ Claims After Minister Meeting

2025-06-08
Leave A Reply Cancel Reply

DON'T MISS
Breaking News

BankservAfrica Rebrands As PayInc

The financial market infrastructure giant BankservAfrica has officially been rebranded to PayInc. The launch, held…

KZN’s First Supercar-Centric Luxury Residential Development Unveiled

2025-08-27

Government Pensions Administration Agency CEO Placed On Precautionary Suspension

2025-08-26

Airtel Africa & Vodacom Forge Landmark Infrastructure Partnership

2025-08-12
Stay In Touch
  • Facebook
  • Twitter
  • YouTube
  • LinkedIn
OUR PICKS

SA’s Skhokho 2.0 Puts Enterprise AI In SME Hands

2025-08-28

Please Call Me: After 25 Years, Will SCA’s New Bench Silence ConCourt?

2025-08-26

Vodacom Invests R400M To Expand Network In Free State And Northern Cape

2025-08-26

Elon Musk’s Starlink Backs BEE Equity Equivalents, Not 30% Ownership

2025-08-18

Subscribe to Updates

Get the latest tech news from TechFinancials about telecoms, fintech and connected life.

About Us

TechFinancials delivers in-depth analysis of tech, digital revolution, fintech, e-commerce, digital banking and breaking tech news.

Facebook X (Twitter) Instagram YouTube LinkedIn WhatsApp Reddit RSS
Our Picks

Pepe Coin Price Forecasts; Floki Inu Latest News & Top Crypto Investment To Make In 2025

2025-08-31

BNB Hits $900 In August As Analysts Give Their Latest Binance Coin Price Predictions

2025-08-31

SUI Price Prediction: Remittix Expected To Rise Over 4,000% This Year After Winning Top Crypto Presale Award

2025-08-31
Recent Posts
  • Pepe Coin Price Forecasts; Floki Inu Latest News & Top Crypto Investment To Make In 2025
  • BNB Hits $900 In August As Analysts Give Their Latest Binance Coin Price Predictions
  • SUI Price Prediction: Remittix Expected To Rise Over 4,000% This Year After Winning Top Crypto Presale Award
  • Ethereum Price Heading Towards $4,000 As Crypto Markets Drop But This Altcoin Continues To Surge
  • XLM Price Prediction In September & Which Altcoins Could Rise Over 25x Next Month
TechFinancials
RSS Facebook X (Twitter) LinkedIn YouTube WhatsApp
  • Homepage
  • Newsletter
  • Contact
  • Advertise
  • Privacy Policy
  • About
© 2025 TechFinancials. Designed by TFS Media.

Type above and press Enter to search. Press Esc to cancel.

Ad Blocker Enabled!
Ad Blocker Enabled!
Our website is made possible by displaying online advertisements to our visitors. Please support us by disabling your Ad Blocker.