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ABB - Abb News Story

$34.22 1.0  2.9%

Last Trade - 14/05/21

Sector
Industrials
Size
Large Cap
Market Cap £47.58bn
Enterprise Value £48.85bn
Revenue £19.09bn
Position in Universe 189th / 6849

UPDATE 1-ABB to pay $104 million to settle South African power plant probe

Fri 11th December, 2020 2:02pm
(Adds details)
    ZURICH, Dec 11 (Reuters) - ABB  ABBN.S  has agreed to pay
$104 million to South African power utility Eskom to settle an
investigation into improper payments and compliance issues, the
Swiss engineering company said on Friday.
    ABB was investigated by South Africa's Special Investigation
Unit in relation to over-payments for construction work it
carried out for Eskom at the Kusile coal-fired power plant.
    The project has been marred by massive cost overruns and
delays, with claims of corruption and over-payments to
contractors.
    ABB said the majority of the payment had already been
recognised in its financial results over the last 15 months.
There would be an additional impact of $30 million on its
operational earnings before interest, tax and amortisation
during the fourth quarter, while cash flow would be reduced by
$110 million.
    The industrial robots and drives maker, which self-reported
the problems to the U.S. and South African authorities last
year, said on Friday it would continue to cooperate with
investigators, as well as well as authorities in the United
States, Germany and Switzerland.
    "ABB intends to expeditiously close all related pending
proceedings globally, the impact of which is currently not
estimable," the company said. 


 (Reporting by John Revill; editing by Thomas Seythal and Carmel
Crimmins)
 ((John.Revill@thomsonreuters.com; +41 58306 7022; Reuters
Messaging: john.revill.thomsonreuters.com@reuters.net))
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