ABB is being investigated for suspect payments related to work carried out by the Swiss industrial giant for embattled South Africa utility Eskom.<\/p>\n
The maker of robotics and power grids ‘self-reported’ the incidents to US and South African authorities and expects it may be sanctioned, ABB said alongside third-quarter earnings on Wednesday.<\/p>\n
The Zurich-based company also took a write-down against the $160 million contracts, awarded in 2015 and involving the Kusile power-plant project.<\/p>\n
ABB joins a string of international companies to be caught up in graft allegations related to Eskom, which is reliant on state bailouts and seen as the greatest risk to the South African economy.<\/p>\n
German software giant SAP SE is being probed in the US for how it won contracts with South African state companies, while McKinsey & Co. said last year it would repay money unlawfully received while working for Eskom.<\/p>\n
Former Eskom chief executive officer Matshela Koko allegedly guaranteed future contracts to ABB in return for subcontracting work to his stepdaughter\u2019s business, the Johannesburg-based Sunday Times reported in March. He denied wrongdoing.<\/p>\n
Both SAP and McKinsey became involved with third-parties linked to the Gupta family, the trio of brothers who were friends with former President Jacob Zuma and are accused of corruption during his scandal-hit tenure. They and Zuma also deny wrongdoing.<\/p>\n
ABB \u201cbelieves that there may be an unfavourable outcome in one or more of these compliance-related matters,\u201d the company said.<\/p>\n
\u201cIt is not possible for the company to make an informed judgment about the possible financial impact.\u201d<\/p>\n