Eskom says pay back the money

Eskom has asked McKinsey and Trillian Capital to pay back the money it says was unlawfully paid to them.

In a very low-key, some would say furtive, late-night media statement, the power utility said it had asked the two to return R1bn and R564m respectively “which appears to have been unlawfully paid out in 2016 and 2017”. What is mind-boggling is how on earth amounts of the magnitude could be disbursed without the proper i-dotting and t-crossing?

Minister of public enterprises, Lynne Brown. Photo: SA Breaking News

Another question is why is this only being dealt with now? Legal firm, Bowmans, advised Eskom two months ago to try and recover the payments and the internal investigation report was handed to public enterprises minister, Lynne Brown on 1 September. In her indubitable Teflon style, the minister maintains she only got the report on Monday.

“The interim findings from Eskom investigations, into the circumstances surrounding payments made to both the companies, point to certain decisions by Eskom, and resultant payments, as being unlawful.

“Eskom is obliged, pursuant to its statutory and common law duties, including the PFMA (Public Finance Management Act) and the Companies Act, to seek to set aside these unlawful decisions and to have all the money unlawfully paid out returned.

“Being such a critical entity, which is inextricably tied to the nation’s economy, it is in the public interest to do everything we can as Eskom to claw back all the fees which were unlawfully paid, while expediting the disciplinary processes currently underway,” the statement said.