South Africa - 05

South Africa: SEC Charges Draw Clear Line in Doing Business with ANC Affiliates

On 28 September the SEC announced it had charged Hitachi with violating the FCPA in relation to deals involving the construction of two 3,800 MW coal-fired power stations in South Africa. Hitachi, which has not admitted or denied the allegations, will pay $19mn in a settlement agreement pending court approval. Hitachi is accused of paying millions of dollars to Chancellor House Holdings (Pty) Ltd., which the SEC found to be a “front company” for the ruling ANC, and then illegally misrepresenting those payments as “consulting fees and other legitimate payments.”

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