Treasury instructions on Eskom consultancies were ambiguous, Singh tells Zondo

Former Eskom chief financial officer, Anoj Singh, was asked why the deals with McKinsey were not in line with a Treasury directive.

A screengrab of former Transnet CFO Anoj Singh giving evidence at the state capture inquiry on 12 March 2021. Picture: SABC/YouTube

JOHANNESBURG - Eskom's former Chief Financial Officer Anoj Singh said that a National Treasury instruction on the appointment of consultancies like McKinsey was “ambiguous”.

He returned on Tuesday to face another grilling at the state capture commission on Eskom-related evidence.

Singh was asked why the deals with McKinsey were not in line with a Treasury directive.

Consultancy firm McKinsey had already repaid about R1 billion to power utility Eskom for what it called “errors of judgment” in relation to some contracts.

But the contractual agreements that the company made with Eskom were still under the spotlight.

Singh was asked by inquiry chairperson, Deputy Chief Justice Raymond Zondo, to explain whether these agreements were signed in accordance with Treasury regulations.

“Is your position that you can’t say whether the conclusion of this agreement was legal or was lawful? Is that correct?” asked Zondo.

Singh told the commission that the Treasury instruction wasn't clear on certain aspects.

“From what I can understand in the documentation that we currently have now is that this was not a clear cut instruction nor was it black and white and applicable, the was some ambiguity whether it was applicable or not.”

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