McKinsey wants judge to decide on legality of Eskom contract

R1.6-billion: 'It was Eskom's responsibility to ensure contract was legal'

11 October 2017 - 06:36 By Reuters
subscribe Just R20 for the first month. Support independent journalism by subscribing to our digital news package.
Subscribe now
McKinsey. File photo.
McKinsey. File photo.
Image: Reuters

Gupta-linked business consultancy McKinsey has called for a High Court ruling on the legality of its R1.6-billion contract with Eskom - and has agreed to repay its fees if the deal is found to have been unlawful, it said on Tuesday.

Eskom had given McKinsey and its local partner Trillian, another consultancy, until Tuesday to repay the fees ostensibly earned for its contribution to a "turnaround programme" for the parastatal between January and July 2016 that the utility now says was illegal.

McKinsey said it would repay the money only if a court found the contract was unlawful.

"We will support a review by the High Court of the validity of the turnaround-programme contract. We invite Eskom and Trillian to submit themselves to this process, too.

"McKinsey will pay back the fee in full if the High Court determines that Eskom acted unlawfully," it said, adding that it was solely Eskom's responsibility to ensure the contract met regulations.

An Eskom spokesman said the utility's legal representatives were talking to McKinsey and they could not comment.

Trillian did not respond to a request for comment. Trillian was until recently controlled by the Gupta family, friends of President Jacob Zuma and accused of the corrupt influencing of state contracts. 

subscribe Just R20 for the first month. Support independent journalism by subscribing to our digital news package.
Subscribe now