Johannesburg - McKinsey & Co is reviewing hundreds of thousands of documents related to state-owned power utility, Eskom, as part of a probe by the US consultancy that includes any interactions with Trillian Capital Partners, a company linked to friends of President Jacob Zuma.
Eskom is conducting its own investigation of work done by Trillian Capital, to which the utility said it paid R495m as part of a corporate plan and turnaround programme. Eskom interim chairperson Zethembe Khoza said last week that Trillian worked for McKinsey as a subcontractor, which McKinsey denies.
READ: Gupta-linked Trillian says it has proof R495m Eskom deal was not phony
The investigation “involves a detailed review of our client interactions and work at Eskom since 2012” and interactions with supply-development partners over the past three years, McKinsey said on Wednesday in an emailed response to questions. Law firm Norton Rose Fulbright is helping with the probe.
READ: Eskom inquiry to kick off with explosive reports
The Guptas, who are in business with one of Zuma’s sons, have been at the centre of allegations of so-called state capture and undue influence over government institutions. In November, South Africa’s anti-graft ombudsman published a report saying Zuma and some ministers may have breached the government’s code of ethics in their relationship with the family.
A July report into allegations against Trillian by a leading advocate showed the company submitted an invoice for R30.7m to Eskom chief financial officer Anoj Singh in April last year, which was paid the same day.
Salim Essa, a business associate of the Guptas, sold his stake in Trillian, the company said in a statement on Wednesday, after reports about the family hindered the financial-services company.
READ: Gupta lieutenant Essa pulls out of Trillian
McKinsey, which ended its work with Eskom by mutual agreement on July 10, said that all payments to Trillian were paid directly by the utility. The consultancy also hasn’t discovered anything that would require notification of US authorities, it said.
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