McKinsey stands firm on controversial SOE pricing model
McKinsey, the global consultancy that had to refund Eskom almost R1bn in fees, will continue to pursue state-sector work in SA using the same controversial pricing model that landed it in hot water. The firm and its local Gupta-linked partner, Trillian, were paid R1.6bn from a 2016 contract that was invalid as it had not been approved by Treasury. McKinsey joined a string of household names 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 Guptas. McKinsey reached an agreement with Eskom and the asset forfeiture unit on Friday on returning the fees, but has denied any criminal wrongdoing. On Monday McKinsey’s new global head, Kevin Sneader, conceded that the firm had overcharged Eskom with fees that were "weighted towards recovering our investment" at a time when the utility "was on a financial cliff edge". If you are already a subscriber, please click ...
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