Preservation orders against McKinsey, Trillian welcomed

Preservation orders against McKinsey, Trillian welcomed

Some have welcomed the move, with both companies standing to lose billions in assets.


The DA and the South African Federation of Trade Unions (Saftu) have welcomed the Asset Forfeiture Unit's decision to serve two companies linked to state capture allegations with preservation orders.

The assets of both companies - to a value of R1.6 billion - will be frozen when the orders are served on them.

The unit secured a preservative order prohibiting companies Trillian and McKinsey from selling their assets, which will be seized unless they can prove - within 90 days - that their dealing with Eskom were lawful.

"We are very pleased that the Asset Forfeiture Unit of the NPA has made this move," says the DA MP Glynnis stressing the unit made the move under great pressure to act on the allegations.

The spokesperson of Saftu Patrick Craven agrees saying, "it's good to see that one arm of the law - the Asset Forfeiture Unit - has been prepared to move".

He adds there is clearly an unanswerable case which has allowed law enforcement officials to freeze the assets of the companies.

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Breytenbach says given the election of Cyril Ramaphosa as ANC president, those law enforcement officials who have been struggling to do their work have "more room to move".

Craven agrees saying they hope the developments "open the floodgates".

In October, Eskom started proceedings to recover funds allegedly unlawfully paid to the companies.

McKinsey was contracted by Eskom and paid a portion of the R1.6 billion it paid to Trillian.

This however is only one of the Gupta-linked companies accused of being involved in state capture.

Breytenbach believes law enforcement officials are only scratching the surface with the preservation orders.

"The actual driver of state capture has not yet been touched," explains Breytenbach, "but I've got no doubt they are starting with the low hanging fruit and moving up."

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