Eskom asks McKinsey, Trillian to return R1.6bn

Internal inquiry has found the utility’s decisions to make the payments were unlawful.
McKinsey is under parliamentary investigation in South Africa for fraud over a $130 million contract to advise Eskom. Picture: Dean Hutton/Bloomberg

South Africa’s Eskom has asked consultancy firms McKinsey and Trillian to pay it back R1.6 billion ($117 million), saying that an internal inquiry had found that the state power utility’s decisions to make the payments were unlawful.

“The interim findings from Eskom investigations into the circumstances surrounding payments made to both the companies point to certain decisions by Eskom, and resultant payments, as being unlawful,” Eskom said on Thursday.

Read: US risk managers advised Eskom to stop paying McKinsey

The utility said in a statement it has written to both companies requesting their cooperation in returning the money.

McKinsey, the world’s largest management consultancy, said it was reasssured by initial findings of the Eskom inquiry that showed the consultancy did not authorise any payments to Trillian.

Trillian was not immediately available for comment.

A third of the money was paid to Trillian, a company at the time connected to the Guptas, a trio of Indian businessmen who South Africa’s anti-graft watchdog has alleged used their links with President Jacob Zuma to win government contracts.

The Guptas have denied any wrongdoing, saying they are pawns a plot against Zuma, who has also denied any wrongdoing.

McKinsey is under parliamentary investigation in South Africa for fraud over a $130 million contract to advise Eskom.

A US risk management firm advised Eskom last year to withhold tens of millions of dollars in payments for advice from McKinsey, because the global consultancy’s “very unusual” payment model allowed it to charge fees in excess of market rates.

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If the Eskom utility is admitting that these payments were illegal where is the urgent court criminal action against McKinsey, Trillian and Eskom Directors and the court action to recover the money???

because they are all idiots…..desperately seeking money.

SHOWS no brains left at Eskom. No claim in law. They should sue the officials who made the unlawful payments. Too late now to blame Trillian etc.

Pay back the Money.

What a disgrace, we as Tax payers get taxed for every cent and the money is just mismanaged.

We as Tax payers get audited, doubled checked, triple checked just in case a single cent or rand was not picked up and yet the money we worked so hard for is mismanaged in this way?

Does SARS deserve our money if it is wasted this way?

End of comments.

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