MCKINSEY WILL RETURN ONE BILLION RAND PAID TO IT BY SOUTH AFRICAN POWER UTILITY ESKOM

International consultaning firm McKinsey has reached an agreement with South Africa’s State-owned power utility Eskom to return one billion Rand (about 74.2 million US dollars) paid to it by Eskom under the latter’s Turnaround Programme, says the power utility.

On Friday, the utility finalised a settlement agreement with McKinsey for the return of the money. 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 Eskom Chairman Jabu Mabuza in a statement.

Since the appointment of the current board of Eskom early this year, its focus has been on, among other issues, addressing governance-related matters with urgency.

Eskom said while the process had taken longer than what would have been ideal, it was of importance that it ensured that an appropriate and transparent legal process was followed.

Eskom Group Chief Executive Officer Phakamani Hadebe said he was pleased that positive results were obtained in the matter. We are equally appreciative of the support and co-operation we have received from McKinsey and the Asset Forfeiture Unit,” he added.

“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.”

Source: NAM NEWS NETWORK