ZURICH (dpa-AFX) - The Office of the Attorney General of Switzerland or OAG, said on Friday that it has imposed a fine of CHF 4 million on ABB Ltd. (ANN.L, ABB), a Swedish-Swiss technology firm, for its failure to take necessary organizational provisions to prevent bribery payments to foreign officials in South Africa.
Some of the ABB staff members had paid huge sum to subcontractors to obtain necessary orders for the construction of a coal-fired power plant in the African country, according to a statement from OAG.
Through these acts, ABB South Africa had received orders for a value of at least $200 million with bribery payments of at least CHF 1.3 million.
Switzerland can impose a fine of up to a CHF 5 million for such bribery scandal cases. However, the company's cooperation during the probe was taken into account to cut the penalty.
OAG noted that no replacement claim has been requested due to the compensation payment already made in South Africa for the sum of $104 million.
Swiss Attorney General also obliges ABB Management Services AG to pay CHF 50,000 as the costs of the proceedings.
The Department of Justice and the U.S. Securities and Exchange Commission are expected to resolve with ABB in the same case on December 2.
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