World Bank confirms investigation into Eskom loan

The World Bank Integrity Vice President, Leonard McCarthy, has acceded to the Democratic Alliance’s request to investigate the corruption scandal surrounding Hitachi and ANC front-company, Chancellor House.

In a letter received from McCarthy he confirmed that the World Bank is looking into the matter and assessing “whether World Bank funds were put at risk due to the actions of the parties identified in the Securities and Exchange Commission (SEC) civil action.”

Hitachi agreed to pay $19 million to the SEC to settle charges of corrupt payments to ANC’s Chancellor House, amounting to $6 million, in order to secure Eskom contracts. The contracts were subsequently paid for with a loan provided by the World Bank to Eskom, with the effect that World Bank funds ended up in ANC coffers.

We welcome the World Bank’s decision to investigate and urge them to take action to recover any funds that found their way to the ANC.

The Hitachi scandal is the most recent example of corruption, cronyism and patronage endemic to the ANC government. The DA will not tolerate that state funds, destined for basic service delivery and infrastructure development, are diverted to enrich the ANC.

On Thursday the DA will therefore be staging a mass rally outside Chancellor House in protest of the abuse of power by the ANC that has devastated the economy and the legitimacy of the state. 

In addition to the complaint laid with the World Bank, the DA has requested investigations by the Public Protector, the Special Investigative Unit (SIU) and laid criminal charges against Chancellor House. The DA will also be raising the matter in Parliament's Standing Committee on Public Accounts (SCOPA), which is tasked with ensuring the legitimate spending of public funds.

Corruption is the enemy of democracy and impacts heavily on the state’s ability to improve the lives of ordinary South Africans. The DA will continue to lead the charge to hold the ANC government to account and bring corrupt officials to justice.

Issued by Graham Charters, Acting spokesperson to the DA Leader, 7 October 2015