DA wants Parliament to call McKinsey representatives over Gupta-linked contract
The DA is to push for Parliament’s public enterprises committee to call SA and US-based representatives of global consultancy firm, McKinsey, before the pending inquiry into state capture. This follows revelations that McKinsey allegedly ignored warnings from its senior South African staff as early as 2013 regarding the risks pertaining to the Gupta-linked company, Trillian Capital, so as to secure a multi-billion rand deal with Eskom.
"The truth is that an Eskom-Trillian contract was far too profitable for McKinsey to lose, which is potentially the reason why they chose to ignore these red flags," DA public enterprises spokesperson Natasha Mazzone said in a statement on Thursday.
"The Eskom contract accounted for more than half of McKinsey SA’s revenue and the ‘Gupta leaks’ e-mails indicate how McKinsey instructed Eskom to pay Gupta-owned companies, described as McKinsey sub-contractors, for work that was never performed.
It is now clear that Trillian was nothing more than a black economic-empowerment partner company for the US-based multinational, McKinsey."
Mazzone said she would ask that Advocate Geoff Budlender’s report into the relationship between Eskom and McKinsey be made part of the evidence the committee will be investigating. "The Budlender report is damning and, in fact, classifies these dealings as a scam," she said.
Mazzone also said the Eskom inquiry is due to commence towards the end of September with parliamentary legal advisor, Advocate Ntuthuzelo Vanara, as the evidence leader. Vanara also led the inquiry into the SABC.