Eskom: McKinsey was a sole source provider
ESKOM said yesterday it had procured the services of consultancy McKinsey through a sole source provider, therefore competitive bidding processes were not followed.
In addition, the use of Trillian as a subcontractor to McKinsey is being investigated, the state-owned entity said.
The contract has since been cancelled and the board is seeking recovery fees from McKinsey, which has agreed to the refund.
Senior officials have been suspended and chairperson Jabu Mabuza says that they have to wait for the course of the investigation into the “dubious transaction” to be completed.
The new chairperson said that the former acting CEO of Eskom, Sean Maritz, would be subjected to a disciplinary inquiry over a letter he sent to McKinsey, which said its R1bn contract with Eskom was “legal”.
Maritz was given until yesterday to explain why he should not be suspended. “We are offering no amnesty to pursue criminal charges to officials found guilty,” Mabuza said.
Radebe criticised the government for taking too long to react to the crisis at Eskom. He said Public Enterprises Minister Lynn Brown should not only be blamed, as several other organisations and finance committees could have made a decision on Eskom before liquidity issues arose.
We are offering no amnesty to pursue criminal charges to officials found guilty (of any misconduct at Eskom)