NEWS

DA To Lay Charges Against McKinsey Over Eskom Debacle

Charges will include fraud, racketeering and collusion.

18/09/2017 17:12 SAST | Updated 18/09/2017 17:13 SAST
Don Bayley

The DA will lay charges against global consultancy firm McKinsey for its alleged dodgy dealings with Trillian and Eskom.

DA spokesperson for public enterprises, Natasha Mazzone, said in a statement on Monday that the party would lay charges of fraud, racketeering and collusion against the company in terms of Section 21 of the Prevention and Combating of Corrupt Activities Act.

"The allegations that McKinsey ignored warnings from senior South African staff, as far back as the beginning of 2013, of possible dodgy deals with Trillian, Eskom and other Gupta-linked companies must be fully investigated," Mazzone said.

"Criminal charges are the first step in ensuring that if any wrongdoing has taken place, those responsible can be brought to book. The DA will not stand by as people in positions of power abuse state institutions for their own selfish gain and to the detriment of South Africans."

Corruption Watch also recently announced that they would report McKinsey to authorities in the U.S., where the firm is based, because they believe it is unlikely that South Africa's local criminal justice system will do anything about it.

The nongovernmental organisation is currently in the process of finalising submissions that will be made to the U.S. Justice Department.

Earlier this year, Advocate Geoff Budlender released a report implicating McKinsey in corruption. It found that Eskom had acquired their services at R1 billion per year, and McKinsey subsequently subcontracted 30 percent of those services to the Gupta-owned Trillian.

Eskom initially said Trillian was paid because they were subcontracted by McKinsey -- which were enlisted in September 2015.

But McKinsey came back fighting, saying they had never entered into a contract with Trillian because of concerns over the Gupta-linked company's ownership.