HTHIY Hitachi Ltd (PK)

Hitachi Ltd. agreed to pay $19 million to settle U.S. Securities and Exchange Commission charges that the Japanese conglomerate violated U.S. antibribery law through allegedly improper payments tied to South African government contracts to build two power-generation plants.

Hitachi agreed to the settlement without admitting or denying the SEC's allegations—which claimed Hitachi had violated the U.S. Foreign Corrupt Practices Act by inaccurately recording improper payments made to a front company for South Africa's ruling political party related to the contracts. A Hitachi spokesman couldn't immediately be reached to comment.

Tokyo-based Hitachi in late 2005 sold a 25% stake in its South African subsidiary to Chancellor House Holdings Ltd., a front for the African National Congress, in a deal that allowed for the company and South Africa's ruling party to share in profits from power-station contracts secured by Hitachi, according the SEC.

Hitachi ultimately won contracts for the two power plants and apparently paid Chancellor House roughly $5 million in dividends based on profits tied to the contracts, according to the SEC.

The SEC also alleged that in 2008, Hitachi paid an additional $1 million in "success fees" to Chancellor House, which were improperly booked as consulting fees.

Write to Tess Stynes at tess.stynes@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

September 28, 2015 14:15 ET (18:15 GMT)

Hitachi (PK) (USOTC:HTHIY)
Historical Stock Chart
From Jun 2024 to Jul 2024

Hitachi (PK) (USOTC:HTHIY)
Historical Stock Chart
From Jul 2023 to Jul 2024