Eskom reaches R43 million settlement with PwC over controversial contract

Eskom and PricewaterhouseCoopers (PwC) have settled a high court case initiated by Eskom in 2021.

On Wednesday, Eskom announced that PwC will pay a sum of R43 million in a full and final settlement of Eskom’s claim against PwC.

According to the utility, the case aimed to set aside a cost reduction contract known as the “Capital Scrubbing engagement” and recover payments made to PwC and Nkonki.

“This engagement was scrutinised by the Judicial Commission of Inquiry into Allegations of State Capture (commonly known as the Zondo Commission),” Eskom stated.

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PwC to pay R43 million

Eskom and PwC have reached a settlement where PwC will pay Eskom R43 million, setting aside the disputed contract and fully and finally resolving Eskom’s claim against PwC.

This settlement is a significant milestone in Eskom’s ongoing action plans to enhance governance and accountability.

“Management’s commitment in dealing with cases arising from the findings of the Zondo Commission has been instrumental in achieving this outcome, and it underscores our dedication to restoring integrity within Eskom,” said Eskom Group Chief Executive, Dan Marokane.

Furthermore, Eskom said it will continue to focus on implementing generation recovery, strengthening governance, and tackling crime and corruption while future-proofing the organisation to enable energy security, growth, and long-term sustainability to the benefit of South Africa and sub-Saharan Africa.

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‘Recovery of R108 million’

In March 2021, Eskom applied for an order declaring the award of a contract to PwC unlawful, unconstitutional, and invalid.

“Eskom is pursuing recovery of approximately R108 million in unlawful payments through a risk-based contract intended to realise savings on capital projects,” Eskom said in an integrated report.

In a parliamentary briefing, Eskom said that the PwC filed a request to Eskom in November 2022 to produce additional documents and supplement the record of decisions, which was responded to in December 2022.

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