DA to push for McKinsey to appear before Eskom Inquiry

14 September 2017

The DA will write to the Acting Chairperson of the Portfolio Committee on Public Enterprises, Ms Zukiswa Rantho, to request that McKinsey South Africa’s representatives, as well as their US based representatives, be called before the Public Enterprises Committee’s Inquiry into State Capture.

This follows the explosive revelations that the global consultancy firm, McKinsey, allegedly ignored warnings from senior South African staff regarding the risks accompanying the Gupta-linked company, Trillian Capital, in order to secure a multi-billion Rand deal with Eskom.

The "Gupta leaks" emails indicate that McKinsey was warned of possible dodgy deals with Trillian, Eskom and other Gupta-linked companies as early as the beginning of 2013.

However, the truth is that an Eskom-Trillian contract was far too profitable for McKinsey to lose, which is potentially the reason why they chose to ignore these red flags.

The Eskom contract accounted for more than half of McKinsey South Africa’s revenue and the "Gupta leaks" emails indicate how McKinsey instructed Eskom to pay Gupta-owned companies, described as McKinsey sub-contractors, for work that was never performed.

It is now clear that Trillian was nothing more than a BEE partner company for the US based multinational, McKinsey.

The web of State Capture is being increasingly exposed, along with all those involved. Those implicated in the exploitation of our country’s resources and complicit in the Guptas’ corruption will be held accountable.

The DA and the South African public took on Bell Pottinger, and we will not hesitate to take on McKinsey.

The DA will also ask that Advocate Geoff Budlender's Report into the relationship between Eskom and McKinsey is made part of the evidence that the Committee will be investigating. The Budlender Report is damning and in fact, classifies these dealings as a scam.

The Eskom Inquiry is due to commence towards the end of September.  Advocate Nthuthuzelo Vanara, the same advocate who successfully conducted the SABC Inquiry, will be the evidence leader, but the multi-party committee will be responsible for getting to the bottom of the matter.

Issued by Natasha Mazzone, DA Shadow Minister of Public Enterprises, 14 September 2017