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McKinsey completes process for repayment of fees to Eskom

6 July 2018

McKinsey, Eskom and the Asset Forfeiture Unit (AFU) today reached a settlement that enables the management consulting firm to voluntarily return the fee it earned on the 2016 Turnaround Programme.

Eskom and McKinsey have been in discussions, along with the authorities, since the beginning of the year to ensure the fee would be repaid through an appropriate and transparent legal process.

The fee repayment is a consequence of Eskom’s non-compliance with the relevant procurement laws and not because of any wrongdoing or admission of liability by McKinsey.

Saf Yeboah-Amankwah, Senior Partner, McKinsey, said, “McKinsey is thankful to have reached this milestone, which fulfils the commitment made last year to voluntarily return its full fee to Eskom. We appreciate the support of Eskom and the AFU in resolving this matter.”

This full and final settlement makes clear that the repayment of the fee will happen within five calendar days of the Court’s order.

Today’s settlement was signed by McKinsey, Eskom, the Asset Forfeiture Unit and the Curator. The settlement agreement, once made an order of Court, will resolve in full McKinsey’s repayment obligations in the proceedings.