South Africa: Chancellor House rejects SEC claims, avoids WBG probe
Issue 310
- 23 Oct 2015
| 3 minute read
Black economic empowerment (BEE) company Chancellor House Holdings (CHH) has rejected claims made in a complaint by the US Securities and Exchange Commission (SEC) against Hitachi that CHH was a front for the ruling African National Congress (ANC). The SEC claimed that Hitachi had breached the accounting rules of the Foreign Corrupt Practices Act by failing to log dividend payments to CHH as payments to a foreign political party and by labelling what the SEC claims was a “success fee” for CHH’s role in winning Hitachi Power Africa boiler contracts for the giant Medupi and Kusile coal power plants as a consultancy fee. Hitachi paid the SEC a $19m settlement without accepting or denying the charges.
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