McKinsey pays back interest arising from Eskom contract
The interest payment covers the two years since McKinsey was paid almost R1bn in 2016
Consultancy McKinsey & Co, which was awarded a lucrative contract by Eskom alongside a Gupta-linked firm, has paid back nearly R100m in interest owed to the utility. Eskom confirmed on Wednesday it received R99.5m in interest from McKinsey on July 23. It has already paid back the R902m it earned for the contract, which was never approved by the Treasury. McKinsey joined a string of companies including audit firm KPMG, software giant SAP and public relations firm Bell Pottinger, whose reputations were battered after being embroiled in state-capture scandals involving the Gupta family. The interest payment covers the two years since McKinsey was paid almost R1bn in 2016. It was calculated on the “prevailing call account rate of Standard Bank at the time, of 6.3%, factored to the two respective payments made by Eskom to McKinsey”, said Eskom spokesman Khulu Phasiwe.
Eskom also paid R565m to Trillian, McKinsey’s empowerment partner. Under pressure from negative media publicity, Es...