NEWS

Eskom Ignored Legal Advice To Suspend Senior Officials

Eskom reportedly ignored advice that officials should be disciplined over the McKinsey/Trillian deal.

02/10/2017 06:34 SAST | Updated 03/10/2017 10:09 SAST
Siphiwe Sibeko / Reuters

Eskom has been accused of ignoring legal advice it received that senior officials should be charged for their roles in the McKinsey/Trillian scandal, Business Day reported on Monday.

McKinsey reportedly received millions of rand in consultancy fees, while the Gupta-linked firm Trillian also received hefty fees allegedly with no work being done.

According to Business Day, a memo was circulated among senior management on September 8 recommending the suspension of seven Eskom officials. This followed an investigation by law firm Bowmans.

This included the suspension of chief executive officer Matshela Koko, who is reportedly already on suspension for another matter. It was also recommended that chief financial offiver Anoj Singh, who is also suspended, be disciplined.

Charge sheets were reportedly prepared for three other officials, but suspension letters were not issued. Two other officials have reportedly been let off the hook.

Bowmans reportedly drafted a motion of notice last month to start legal proceedings against Trillian and McKinsey, to have the contracts with Eskom set aside, but nothing has come of the legal process.

Eskom reportedly told Business Day: "Eskom is in the process of obtaining legal advice to enable it to take steps to recover any amounts spent irregularly with third-party suppliers. Eskom has taken disciplinary action against individuals regardless of the position they hold," spokesperson Khulu Pasiwe reportedly said.

Meanwhile, Eskom plans to meet with Business Leadership SA (BLSA) over its suspension from the body, Times Live reported.

According to BLSA CEO Bonang Mohale: "South Africans have been rightly disturbed in recent times at the numerous allegations of corrupt behaviour and colossal failures of corporate governance and accountability at both Eskom and Transnet."

He also said BLSA had engaged with Eskom and Transnet over the allegations but was not satisfied with their responses.

** This story was edited for accuracy.