McKinsey admits to making mistakes in Eskom, Trillian deal
The consultancy firm says after a four-month-long investigation, it’s decided to suspend all work for SOEs until further notice.
JOHANNESBURG - McKinsey has admitted it had made mistakes while working with Gupta-linked company Trillian and Eskom but it’s largely blamed the power utility for failing to obtain the necessary approvals before signing the contract.
The consultancy firm released a statement on Tuesday saying after a four-month-long investigation it’s decided to suspend all work for state-owned companies until further notice.
McKinsey also says it wishes it had done things differently when working for Eskom but it is prepared to pay back the money if a court decides the contract in place was invalid.
It says Eskom advised the firm in February last year that it had received National Treasury's approval before it signed a contract with the power utility.
It turns out that Eskom didn't receive approval and ignored advice about entering into that contract with McKinsey in the first place.
The consultancy firm says it has set aside its fee and will repay Eskom based on a court review because it has no interest in benefitting from an invalid contract.
McKinsey says it believes Trillian withheld information about its connections to the Guptas but admits that it was not careful enough about who it is associated with.