McKinsely will pay back Eskom’s money on court order

On Tuesday, global consultancy firm McKinsely announced that it will pay back in full a R1 billion fee to Eskom if a court determined that the power utility had acted unlawfully.

On Thursday, Eskom said it was seeking the cooperation of McKinsley and the Gupta linked company Trillian to return the R1 billion and R564 million respectively which appears to have been paid out unlawfully in 2016 and 2017.

Eskom, who has been a client of McKinsely since 2005, said they had written to both companies explaining the action it would take and asked for their cooperation in the matter.

“We believe our work on the turnaround programme created substantial value, helping improve operating performance by, among other things, increasing plant availability and reducing contractor claims on the new build programme.”

Eskom had advised the agency that they believed it violated procurement regulations and its internal procedures in the formation of the contract, as well as the decision it took with respect to the contract may have been taken without proper authorisation.

McKinsely explained that is contract with the power utility for the turnaround programme was approved by Eskom.

Eskom is now contending the contract, saying it should be held invalid because Eskom did not, in fact, receive the necessary approvals. They want the issue to be resolved .

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