Settlement of $327 million already announced and accounted for in the third quarter 2022 financial statements.
ABB has reached a full and final settlement with the National Director of Public Prosecution in South Africa, the U.S. Department of Justice, the U.S. Securities and Exchange Commission, and the Office of the Attorney General of Switzerland related to the legacy Kusile project in South Africa, awarded in 2015. ABB hopes to reach a final resolution with German authorities in the near term.
The settlements total $327 million. They were already accounted for in ABB’s third quarter 2022 financial results and include the expected exposure to the German case. The corresponding negative cash flow impact is expected to be split with approximately three quarters in the fourth quarter 2022 with the remainder in the first quarter 2023.
ABB CEO Björn Rosengren: “We take the Kusile matter very seriously. Since it was reported, ABB has cooperated fully with all authorities and spent considerable time and effort – including launching a new code of conduct, educating employees and implementing an enhanced control system – to prevent something similar from happening again. We have a clear zero tolerance approach to non-ethical behavior within our company.”
ABB is a technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. The company’s solutions connect engineering know-how and software to optimize how things are manufactured, moved, powered and operated. Building on more than 130 years of excellence, ABB’s ~105,000 employees are committed to driving innovations that accelerate industrial transformation. www.abb.com
