JOHANNESBURG ¨C Hitachi Ltd.¡¯s $19 million settlement with the U.S. Securities and Exchange Commission provides insight into how the company became a crucial supplier to South Africa¡¯s behind-schedule power plants that have yet to solve the country¡¯s electricity shortage.
The SEC last week said Hitachi had ¡°inaccurately recorded improper payment¡± to an arm of South Africa¡¯s ruling African National Congress. Hitachi neither admitted guilt nor denied the allegations, the SEC said in a statement.
It said the Japanese company landed $5.6 billion in contracts to build boilers for new power plants intended to boost South Africa¡¯s electricity-generation capacity by about 25 percent, while what it described as an ANC ¡°front company,¡± Chancellor House Holdings Ltd., made a 5,000 percent return on its investment in the local Hitachi unit.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.