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Eskom delivers on its commitment to recover McKinsey payments
Friday, 6 July 2018: Since the appointment of the current Board of Eskom early this year, focus has been and continues to be, amongst other interrelated issues, addressing governance related matters with urgency. This process has seen several Executives and Senior Managers depart on the back of serious allegations of misconduct. Alongside the disciplinary processes relating to cleaning up, there has also been great emphasis on recovering all monies that were paid irregularly in terms of the PFMA.
 
We are therefore pleased to have made strides in this journey as we today finalised a settlement agreement that will see McKinsey pay back the R1 billion paid to it by Eskom under the Turnaround Programme. The process has taken longer than what would have been ideal however it was of importance that we ensure that an appropriate and transparent legal process is followed.
 
“This is a significant milestone for the Board as we seek to fulfil what we see as our non-negotiable mandate to root out financial mismanagement and malfeasance as a critical foundation to restoring transparent and effective governance” said Jabu Mabuza, Eskom Board Chairman.
 
“We are thankful that this hard and difficult journey has yielded positive results. We are equally appreciative of the support and cooperation we have received from McKinsey and the AFU. This for us further demonstrates that we are serious about consequence management and achieving a renewed culture of accountability and good governance which is key to our sustained success,” said Eskom Group Chief Executive Phakamani Hadebe.
 
As Trillian was not party to the settlement, Eskom will continue to pursue the recovery of the remainder of the payments made to Trillian through the legal review process that was launched earlier this year.
 
“Whilst this is the first, it certainly will not be the last as we are committed to continue to deal decisively with improper and irregular contracts,” added Mabuza 
 
“Our priority remains to entrench financial and business discipline; rebuild the credibility and integrity of this utility with financial markets as key principles required to stabilise, reform and ultimately set Eskom up to achieve both its commercial and developmental mandate,” concluded Mabuza.
 
 
ENDS