Today's Big Stories

Hitachi scandal: Focus on transparency about political party funding

The Securities and Exchange Commission (SEC) has charged Tokyo-based conglomerate Hitachi, Ltd with violating the Foreign Corrupt Practices Act (FCPA).

Hitachi has been found guilty of inaccurately recording improper payments to the African National Congress (ANC) in connection with contracts to build two multi-billion dollar power plants, Medupi and Kusile.

Hitachi has agreed to pay $19 million to settle the SEC charges.

Calls for transparency with political party funding

702/Cape Talk's Stephen Grootes this afternoon explored matter of political party funding with former politician Valli Moosa (who was chairperson of Eskom at the time when the Hitachi contract first surfaced) and Corruption Watch's David Lewis.

Moosa said if these findings were indeed true, it would be disappointing. He added that these allegations raised questions of funding of political parties and transparency thereof.

This matter is an unfinished part of our constitution making. It is the only weakness of our otherwise great constitution.

Valli Moosa, Former politician

Listen to the conversation below:

What this allegation means

702's John Robbie spoke to Mail & Guardian journalist, Sam Sole about this report.

Listen to the conversation below:

Corruption dates back to 2006

Speaking to Cape Talk's Kieno Kammies, Hennie van Vuuren - a research associate at the Institute for Justice and Reconciliation (IJR) - said the ANC's association with corrupt activities to secure mineral tenders in South Africa dates back to 2006.

In ordinary language, we call this corruption. We've allowed all South African politicians to normalise corruption.

Hennie van Vuuren, Research Associate at the IJR

Listen to the full conversation from CapeTalk's Breakfast with Kieno Kammies:

Chancellor House a front

The SEC alleges that Hitachi sold a 25% stake in a South African subsidiary to a company serving as a front for the African National Congress (ANC).

According to van Vuuren, this arrangement gave the front company (Chancellor House) and the ANC the ability to share in the profits from any power station contracts and mineral tenders.

The Tokyo-based conglomerate was ultimately awarded two contracts to build power stations Medupi and Kusile.

It allegedly paid the ANC’s front company $5 million in “dividends” based on profits derived from the contracts.

It is also claimed that, through a separate undisclosed arrangement, Hitachi paid the front company another $1 million in “success fees” and inaccurately booked them as consulting fees without the proper records.


Recommended

by NEWSROOM AI
Read More
Veterans and ANC not on same page about terms of consultative conference

Veterans and ANC not on same page about terms of consultative conference

ANC vets want civil society groups present at the consultative conference, which they want held separately from another meeting.

Top SABC journos applauded for brave testimony

Top SABC journos applauded for brave testimony

EWN's Gaye Davis summarises the evidence of the SABC journalists who appeared before the ad hoc committee in Parliament.

If you're gona be a hero (and smash a car window), make sure you can prove harm

If you're gona be a hero (and smash a car window), make sure you can prove harm

A criminal lawyer explains what leg citizens can stand on if they witness a child or pet locked in a vehicle in risky conditions.

SABC 'in contempt of court' if Motsoeneng reports for duty, says DA

SABC 'in contempt of court' if Motsoeneng reports for duty, says DA

The DA's James Selfe says it is not clear whether SABC's Hlaudi Motsoeneng will be either fired or suspended pending an inquiry.

'We must speak up against the tyranny of the majority'- former justice Kriegler

'We must speak up against the tyranny of the majority'- former justice Kriegler

Former Constitutional Court judge Johann Kriegler explains his recent remarks regarding President Jacob Zuma and the ruling party.

Vavi urges South Africans  to show "collective disgust" over government spending

Vavi urges South Africans to show "collective disgust" over government spending

Zwelinzima Vavi says South Africans need show their dissatisfaction and hold government to account through active citizenship.

Popular articles
Stealthing: a form of rape, says Dr Tlaleng

Stealthing: a form of rape, says Dr Tlaleng

'Stealthing' is the act of discreetly removing the condom without the knowledge or consent of the other party during sex.

Afroworld View employees left jobless, as DStv shuts it down

Afroworld View employees left jobless, as DStv shuts it down

CWU says 350 workers from Afroworld View will be paid at the end of the month even though the channel has closed.

[LISTEN] Solly Msimanga: Expropriate land at market related prices

[LISTEN] Solly Msimanga: Expropriate land at market related prices

Executive Mayor of the City of Tshwane Solly Msimanga shares his vision for Gauteng as the candidate for Premier in 2019.

We need to guard our independence - Kganyago

We need to guard our independence - Kganyago

Reserve Bank Governor, Lesetja Kganyago responds to an EFF bill proposing nationalisation of the central bank

[WATCH] Guy gives girlfriend the hood from his jacket but keeps coat for himself

[WATCH] Guy gives girlfriend the hood from his jacket but keeps coat for himself

Khabazela shares some of the most popular tweets, posts, and videos on 'What's gone viral'.

Two young boys go the extra mile to get a sick dog to a vet with just R7

Two young boys go the extra mile to get a sick dog to a vet with just R7

Peter and Jerry gave up their last R7 to get a sick community dog (Lady) to an Animal Welfare shelter for medical attention.