20/07/2017 08:50 SAST | Updated 20/07/2017 08:54 SAST

McKinsey Refutes Eskom's Claims About It's Relationship With Trillian

The consultancy firm says it had nothing to do with the Gupta-owned company.

Arnd Wiegmann / Reuters
The logo of consulting firm McKinsey + Company is seen at an office building in Zurich, Switzerland September 22, 2016. REUTERS/Arnd Wiegmann

Multinational consultancy firm McKinsey & Company have hit back at Eskom, saying it had never entered into a contract with Gupta-owned entity, Trillian, because it was concerned about its ownership.

On Wednesday, while releasing its annual financial results, Eskom said they had a contract with McKinsey who subcontracted Trillian to do consultancy work for them.

EWN reported on Thursday McKinsey said despite one of its partners writing a letter to Eskom to pay Trillian directly for services as a subcontractor, it informed the utility that this was inaccurate and all payments to Trillian were paid directly by Eskom and presumably governed by its own rules and processes.

Eskom previously insisted that it did not pay the Gupta company "a cent" because there was no contract in place.

However, on Wednesday, the parastatal's acting board chairperson Zethembe Khoza admitted to paying Trillian almost R500 million in consultancy fees.

Khoza said while the power utility never entered into a direct contract with Trillian, it was a subcontractor of McKinsey. McKinsey was paid R900 million.