Eskom begins process to get back the money
Eskom irregularly paid R1.6bn to consulting firm McKinsey and to the Gupta family linked Trillian in 2016
After months of public outrage, Eskom has taken steps to recover billions of its monies irregularly paid out to consulting firm McKinsey and its politically connected ally Trillian. The power utility said on Thursday it had written to the management consultancies to "request their co-operation in repaying the funds". The funds appeared to have been unlawfully paid to the politically connected companies, said Eskom. Eskom paid R1.6bn to McKinsey and to the Gupta family linked Trillian in 2016 for what it said was their help to save money under the top engineers programme, a plan to develop internal engineering consulting capacity. The utility did not follow its own procurement regulations in choosing the consultancies, including obtaining an exemption from Treasury for tendering procedures. Controversially, Eskom agreed to pay McKinsey a percentage of the monies saved, instead of the prescribed hourly rate as per Treasury regulations. The McKinsey bill came to R945m for six months of...
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