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McKinsey to repay Eskom R902-million and apologise

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McKinsey will on Monday pay back R902-million of the R1.6-billion that Eskom awarded it in 2016‚ but will keep millions in interest it earned on the fee.

The global consulting company will‚ through its new global managing partner‚ also make a public apology and “talk frankly” about how it handled the situation relating to its work at the power utility.

Even as it claims “full and final settlement”‚ McKinsey will‚ however‚ not be paying the balance‚ which it instructed Eskom to pay over to the Gupta-linked Trillian Capital in 2016.

“The R902-million is the full fee we received from Eskom and we have paid it back‚” said McKinsey spokeswoman Bonita Dordel on Sunday. “Just the full fee and not the interest.”

At the prime lending rate of 10% a year‚ interest on the full amount would be about R320-million for the two years since Eskom paid the money.

[source: Times Live]
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