New Eskom board to explain U-turn on McKinsey - spokesperson

Eskom says it’s now reached a new conclusion that a R1 billion contract with global consultancy firm McKinsey was lawful.

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JOHANNESBURG - Eskom says its newly appointed board will explain in the next few days why a premature announcement was made declaring the R1 billion deal with McKinsey unlawful.

In an about-turn on Thursday morning, the parastatal said that the deal was legitimate. However, the consultancy firm will still have to pay back the money.

The firm said in Parliament that it would reimburse the parastatal irrespective of the outcome of a legal process.

Eskom spokesperson Khulu Phasiwe says that an internal investigation has reached a different conclusion, finding that the payment was above board.

But Phasiwe says that the new board will have to explain the latest decision on the matter.

"The information I have from the office of the deputy is that there will be a report from the legal counsel who has been working on this particular matter. They’ll explain why we still want this money from McKinsey."

(Edited by Shimoney Regter)