Come clean, McKinsey: Future SA

WEDNESDAY OCTOBER 18 2017 FUTURE South Africa has called for McKinsey to come clean and appear before the portfolio committee on public enterprises to give evidence on its role in the shenanigans at Eskom.

This followed the statement by McKinsey yesterday that it would suspend its work with state-owned entities (SOEs) after an internal probe found it did not adhere to its own procedures.

McKinsey was paid over R1 billion and Trillian over R500 million for work done at Eskom.

However, Eskom has demanded its money back from McKinsey and Trillian – a Gupta-linked company. But McKinsey said it would require a court to decide if it would have to pay back the money.

The statement by Future South Africa on McKinsey came on the day Parliament started its inquiry on state capture.

The academics who wrote a report on state capture were the first witnesses before the portfolio committee on public enterprises.

Professor Anton Ebehard of the University of Cape Town warned Parliament that corruption was rampant at Eskom, and this called for an investigation by the law-enforcement agencies.

Future South Africa said it was happy McKinsey had acknowledged its role of malfeasance at Eskom. It said McKinsey must return the money it got from Eskom.

“We reiterate the views of Corruption Watch that there should be an independent investigation, and that McKinsey should co-operate…

“It should also proactively co-operate with the parliamentary inquiry into Eskom, and not wait to be summoned,” said Future SA.

In the inquiry yesterday MPs raised concerns about the levels of corruption at Eskom and other SOEs.

Mondli Gungubele of the ANC said he was concerned about the overhaul of the boards in SOEs each time a new minister was appointed.

Ebehard said it was the task of the committee to establish the relationship between the appointments of new boards in SOEs and new ministers.

Steve Swart of the African Christian Democratic Party said he was concerned about the billions of rand leaving the country.

He said the South African Reserve Bank must be asked to establish the exact amounts that have been sent outside.

Ebehard said the impact on the economy had been huge due to state capture.

He said Eskom was important for the growth of the economy.

He added that the issue of McKinsey had been reported to the New York securities exchange by Corruption Watch and it would be dealt with at that level.