National McKinsey to repay R902m to Eskom to avoid further legal action BL PREMIUM

Consultancy McKinsey is to repay the R902m fee Eskom contentiously awarded it for work on a 2016 turnaround programme and will be spared any further legal action in return. The outcome is a consequence of Eskom’s non-compliance with the relevant procurement laws, not because of any wrongdoing or admission of liability by McKinsey, the consulting firm said in a statement on Friday. Earlier this year, the National Prosecuting Authority (NPA) told the courts the payments of a total R1.56bn made to McKinsey and sub-contractor Trillian Capital Partners were criminal. McKinsey came under fire for facilitating state capture when it allowed then Gupta-controlled Trillian to be part of the programme, and earn a generous fee, although it contributed little to the work. "McKinsey, Eskom and the NPA’s Asset Forfeiture Unit today reached a settlement that enables the management consulting firm to voluntarily return the fee it earned," Friday’s statement said. The repayment must still be made an ...