McKinsey to pay back the money should court deem its Eskom contract illegal

Global management consulting firm McKinsey on Tuesday said it would repay all fees received from Eskom if a high court review found that its contract with the power utility was unlawful.

This after Eskom gave the firm and its local partner, Trillian, until Tuesday to respectively return R1 billion and R564 million in consultancy fees, which the utility said appeared to have been “unlawfully paid out” in 2016 and 2017.

In a statement, McKinsey said Eskom had been its client since 2005 and “we stand by our work at the company.”

“To provide reassurance to the citizens of South Africa, we will support a review by the High Court of the validity of the turnaround program contract. We invite Eskom and Trillian to submit themselves to this process too.

“We plan to set aside the full fee McKinsey earned on the turnaround programme in a ring-fenced account ready to comply with the court’s decision,” McKinsey said.

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