McKinsey pays back the money

The National Prosecuting Authority (NPA) found that Eskom paid McKinsey and the Gupta-linked Trillian almost R1.6 billion irregularly. 

Trillian did not render any services to the power utility for the money it received

The chairperson of the Eskom board Jabu Mabuza said it won't be the last successful recovery, as the board is committed to dealing decisively with improper and irregular contracts.

"We are therefore pleased to have made strides in this journey as we today finalised a settlement agreement that will see McKinsey pay back the R1 billion paid to it by Eskom under the Turnaround Programme. The process has taken longer than what would have been ideal however it was of importance that we ensure that an appropriate and transparent legal process is followed.

"This is a significant milestone for the Board as we seek to fulfil what we see as our non-negotiable mandate to root out financial mismanagement and malfeasance as a critical foundation to restoring transparent and effective governance," Mabuza said in a statement. 

He added that Eskom will continue to pursue the recovery of the remainder of the payments made to Trillian through the courts. 

"Our priority remains to entrench financial and business discipline; rebuild the credibility and integrity of this utility with financial markets as key principles required to stabilise, reform and ultimately set Eskom up to achieve both its commercial and developmental mandate." 

McKinsey said the payment was not an admission of guilt in the part of the consulting firm but rather a consequence of Eskom's non-compliance with procurement laws. 

"McKinsey is thankful to have reached this milestone, which fulfils the commitment made last year to voluntarily return its full fee to Eskom. We appreciate the support of Eskom and the Asset Forfeiture Unit (AFU) in resolving this matter," said Saf Yeboah-Amankwah, a senior partner at McKinsey.