Matshela Koko challenges R2.5bn NPA settlement with Eskom contractor ABB
Former Eskom executive argues state lacks authority to grant immunity in corruption cases instead of pursuing prosecution.
Matshela Koko challenges R2.5bn NPA settlement with Eskom contractor ABB
Former Eskom executive argues state lacks authority to grant immunity in corruption cases instead of pursuing prosecution.
Former Eskom executive Matshela Koko has asked the Gauteng High Court to set aside a R2.5-billion settlement agreement between the National Prosecuting Authority and Swedish-Swiss technology company Asea Brown Boveri, arguing there is no legislative authority for such deals in criminal cases2.
The NPA's Investigating Directorate reached the agreement with ABB in December 2022, under which the company paid punitive reparations to avoid prosecution and agreed to assist law enforcement with evidence of tender corruption at Eskom2. ABB's South African subsidiary held contracts worth R2.2-billion for the Kusile Power Station in 20152.
ABB admitted to the United States Department of Justice that it had paid bribes to "a high-ranking official at South Africa's state-owned energy company" to secure the contract1. The settlement formed part of a cross-continental anti-corruption deal negotiated in 2022 with the United States, Italy and Germany1.
The NPA said at the time that the agreement was reached under Section 64(e) of the Prevention of Organised Crime Act and reflected "the NPA's two-pronged strategy to deal with corruption through prosecuting perpetrators and recovering the stolen money"1.
Koko, who served as acting CEO at Eskom between December 2016 and May 2017 before being placed on special leave, is among former executives being investigated over tenders allegedly awarded through bribes2. His corruption case was struck off the roll in 2023 due to delays2.
The NPA, opposing Koko's application, argued his litigation is aimed at collapsing the criminal case against him2. Part of ABB's agreement involved providing the NPA with evidence linking Koko to bribery and corruption charges2.
ABB has warned that if the agreement were set aside, the state might have to repay the settlement amount2. The NPA has described Koko's case as "fundamentally flawed"2.