Eskom happy with McKinsey payment, turns attention to Trillian
On Monday, McKinsey apologised to South Africa for its role in state capture, saying it was slow to admit wrong doing.
JOHANNESBURG – Eskom says it’s relieved that global consultancy firm McKinsey has finally paid back the money, saying it will now turn its attention on Trillian Capital.
On Monday, McKinsey apologised to South Africa for its role in state capture, saying it was slow to admit wrongdoing.
It paid back to Eskom R902 million.
The company, together with Trillian, was contracted to implement a turnaround strategy at the power utility.
At the time, Eskom paid it almost R1 billion while Trillian pocketed R600 million.
But it maintains there is no evidence of its involvement in any corrupt activity.
Eskom spokesperson Khulu Phasiwe says they are just happy the money has been paid back.
“They’ve been this standoff for many years, we’re glad now that the matter has reached finality.”
Phasiwe adds that: “The Asset Forfeiture Unit has taken a legal view on this [involving Trillian] matter because ultimately we want to have that money back.”
He says Eskom will make sure it doesn’t entangle itself in such unlawful contracts again.
Meanwhile, McKinsey has admitted that it failed to follow its own procedures, including its failure to do more due diligence on Gupta-linked companies Trillian and Regiments.
The company’s global managing partner Kevin Sneader was speaking at the Gordon Institute of Business Science on Monday.
“We did not admit where we were wrong. And worse, we did not say sorry quickly enough and clearly enough.”
He said the company should have communicated well enough to show how serious it was taking the issue of state capture and how sorry it was for its involvement.
The company said its mistakes had a significant material effect on its business.
‘NO EVIDENCE OF CORRUPTION’
Despite apologising for its role in state capture, McKinsey insists there is no evidence to prove the company has been involved in corrupt activity.
Sneader said they shouldn’t have trusted Trillian Capital.
“The due diligence should have been completed before any work started. We were so focused on delivering our work that we did not focus enough on the broader risks. That was wrong. We deeply regret that mistake.”
He said while the company’s internal investigations show that the firm failed to follow its own due processes, it found no evidence that it engaged in corrupt activity during its dealings with Eskom and Trillian.
(Edited by Leeto M Khoza)