Eskom welcomes McKinsey apology

Tuesday, July 10, 2018

Eskom has welcomed McKinsey’s apology to South Africa for its role in State capture.

“Eskom welcomes the apology made by McKinsey & Company Global Managing Partner, Kevin Sneader, to the people of South Africa at the University of Pretoria’s Gordon Institute of Business Science (GIBS) forum earlier today,” said the power utility on Monday.

In his speech on Monday, Sneader said he was “very sorry personally and on behalf of McKinsey & Company for the fact that we have had anything to do with any of the issues surrounding State Capture”.

Monday’s apology followed hot on the heels of the announcement that the management consulting firm will pay back the R1 billion paid to it by Eskom under the Turnaround Programme.

On Monday, the power utility confirmed that it had received payment of R902 million.

In his apology, Sneader said State capture has had a horrible effect on South Africa, its economy and its people.

The Eskom board and management welcomed this milestone of recovering funds from McKinsey and committed to continue to deal decisively with improper and irregular contracts.

“To this end, Trillian, which was not party to the settlement, will be pursued for the recovery of the remainder of the payments through the legal review process, together with the National Directorate of Public Prosecutions (NDPP),” Eskom said.

Eskom Group Chief Executive Phakamani Hadebe thanked the Asset Forfeiture Unit (AFU), NDPP and McKinsey for their cooperation, saying the payment will help the utility to address its challenges.

“This payment goes a long way towards our quest to address the issues of funds lost and regaining the trust of our people.

“We commit ourselves to root out financial mismanagement and malfeasance and we will continue to work with the six regulatory bodies and law enforcement agencies in addressing corruption, which are National Treasury, Special Investigative Unit (SIU), SAPS, Hawks, NDPP and the Zondo Commission,” said Hadebe.

In May, Deputy Chief Justice Raymond Zondo announced that the first round of hearings for the State capture inquiry will be held in August. -