Brown un­der fire for fail­ing to act on ev­i­dence about Eskom

The Herald (South Africa) - - NEWS -

PUBLIC En­ter­prises Min­is­ter Lynne Brown is un­der fire for fail­ing to act on damn­ing ev­i­dence that im­pli­cates top Eskom man­agers in an al­legedly ir­reg­u­lar pay­ments scan­dal.

Busi­ness Day re­ported yes­ter­day that Brown had been handed prima fa­cie ev­i­dence that Eskom had used to sus­pend top of­fi­cials for au­tho­ris­ing ir­reg­u­lar pay­ments of R1.6-bil­lion last year.

The ev­i­dence in­cluded doc­u­ments about pay­ments to Gupta-linked Tril­lian with­out in­voices or con­tracts‚ unau­tho­rised ex­pen­di­ture and breaches of the Public Fi­nance Man­age­ment Act.

Eskom also al­legedly failed to ask the Trea­sury for per­mis­sion to de­vi­ate from nor­mal pro­cure­ment pro­ce­dures be­fore sign­ing a con­tract with McKin­sey.

It was re­ported this week that con­sul­tancy firm McKin­sey‚ which has been dragged into the Gupta state cap­ture saga‚ had dis­tanced it­self from its South African di­rec­tor‚ Vikas Sa­gar‚ and Tril­lian.

Eskom said in June that New York City law firm Oliver Wy­man had found pay­ments of R1.6-bil­lion to Tril­lian and McKin­sey to be above board.

Eskom has ad­mit­ted to ly­ing about pay­ments made to Tril­lian and McKin­sey‚ ad­mit­ting the pay­ments were red-flagged.

Brown’s spokesman Colin Cruywagen said the min­is­ter had taken a par­tic­u­lar in­ter­est in the Tril­lian mat­ter as in­for­ma­tion re­ceived from Eskom‚ re­layed to par­lia­ment in good faith‚ had sub­se­quently been brought into ques­tion.

Eskom de­clined to re­spond to ques­tions.


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