McKinsey & Company has announced it is returning the cheque for doing Eskom’s accounts, and it will immediately stop doing work for state-owned enterprises. The Cape Messenger reports that the move has to do with the growing scandal over the state capture by the Gupta family – and by extension the Zumas – of state-owned enterprises, particularly Eskom
McKinsey, who are consultants, say they are suspending all work for state utilities in the country until further notice.
Eyewitness News reported that Eskom had demanded that McKinsey and Trillian should return at least R1.6 billion it paid to them in disputed contracts.
ANN7, the Gupta family supporting television channel, carried a headline saying that McKinsey said that it will repay the cash paid to it by Eskom.
The consultants said in a statement released this morning that over the past four months their Global General Counsel, Jean Molino, had conducted “a thorough investigation into the claims of wrongdoing levelled against McKinsey & Company regarding its work at Eskom since 2015. This involved Regiments Capital and Trillian.”
Molino had been assisted by two law firms, Norton Rose Fulbright in consultation with Morrison & Foerster.
“Our findings from the investigation are that we have never served the Gupta family or any companies publicly linked to the Gupta family; we have never had a contract or supplier development partnership with Trillian, although we did work alongside Trillian for several months at Eskom; Trillian failed our due diligence in March 2016 after repeatedly refusing to provide details about its ownership; and we terminated all discussions with Trillian and informed Eskom that Trillian would not be our supplier development partner.
“That said, we should not have started working alongside Trillian in December 2015 before we had completed our due diligence and had answers to our questions,” McKinsey’s Dominic Barton, the global managing partner said.