Hitachi to Settle U.S. Charges It Paid South Africa's ANC
- Hitachi allegedly paid South Africa ruling party for contracts
- ANC front allegedly made 5,000 percent return on investment
The construction site of Kusile power station in Delmas, South Africa.
Photographer: Nadine Hutton/BloombergThis article is for subscribers only.
Hitachi Ltd. agreed to pay $19 million to settle Securities and Exchange Commission charges that it inaccurately reported “improper payments” to South Africa’s ruling party to help it win contracts to take part in the construction of two power plants in the country.
Hitachi sold a 25 percent stake in its South African unit to Chancellor House Holdings(Pty) Ltd., allowing the company and the party to share profits. Hitachi paid Chancellor House, which it knew was a front for the ruling African National Congress, $5 million from the contracts and another $1 million in “success fees,” the SEC said in a statement on its website on Monday.