McKinsey offers to pay back R1 billion

MCKINSEY has confirmed it will pay back the tainted R1 billion it received from Eskom, because the power utility had paid it without obtaining approval from the National Treasury.

The decision by McKinsey yesterday came as advocate Wim Trengove SC, in a legal opinion, advised Parliament there was nothing wrong with the inquiry into state capture, after Public Enterprises Minister Lynne Brown challenged it.

Parliament had sought Trengove’s legal opinion on the inquiry after Brown, through the office of the state attorney, questioned both the process and evidence leader, advocate Ntuthuzelo Vanara.

The portfolio committee on public enterprises gave its full backing to Vanara.

ANC chief whip Jackson Mthembu also entered the fray and backed Vanara and the the committee’s work. He said Brown and all those implicated would be given an opportunity to respond to the allegations against them.

“We have been assured by the committee on public enterprises that all individuals mentioned, accused or implicated by any testimony during the inquiry will be afforded an opportunity to tell their side of the story.

“In fact, the committee is already communicating with various parties, inviting them to appear before the MPs,” said Mthembu’s spokesperson, Nonceba Mhlauli.

In another failed move by Brown, Parliament also refused to accede to her request for former finance minister Pravin Gordhan to recuse himself from the probe, because of a conflict of interest.

Trengove said the committee was not performing a judicial function and Gordhan could serve on the committee.

He said the fact that Gordhan had knowledge on Eskom and other state-owned entities did not exclude him from the process.

Brown and her deputy Ben Martins have accused the committee of an unfair process and said they wanted an opportunity to present their side.

Senior partner at McKinsey David Fine said they would pay back the R1bn they had received from Eskom.