McKinsey admits to lapse of judgment in Eskom deal
But the global consultancy says it has not fired any staff nor found evidence of intentional wrongdoing
McKinsey admitted to lapses in judgment and failing to adhere to its administrative processes in its work for Eskom with Gupta-linked Trillian. But the global consultancy said that it had not fired any staff or found evidence of intentional wrongdoing. Eskom wants McKinsey and Trillian to pay back the R1.6bn they earned for six months of work, after the utility announced last week that it would go to court to have the unlawful contract set aside. The contract’s "at risk" payment model, allowing fees to be calculated as a percentage of savings, did not receive Treasury approval, as required by law. This payment method resulted in Eskom paying higher fees to McKinsey and Trillian than if the utility had been billed by the hour. McKinsey said in a statement early on Tuesday that senior partner Vikas Sagar, who was investigated for instructing Eskom in a letter to pay Trillian directly, had left the firm. Sagar’s letter "should not have been issued for a party with whom we did not have ...
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