Why Eskom, McKinsey must get their story straight on millions paid to Trillian

Consultancy firm McKinsey has refuted statements made by Eskom that it had subcontracted Gupta-linked company Trillian.

Eskom has now admitted to paying Trillian almost R500 million in consultancy fees.

Eskom’s acting board chairperson Zethembe Khoza made the admission on Wednesday, despite the power utility denying it earlier this year.

Khoza says they had a contract with McKinsey who subcontracted Trillian to do consultancy work for them.

In May, Eskom insisted that it did not pay Gupta-linked company a cent because there was no contract in place.

Read: Eskom board trying to pull a Hlaudi on us - FM editor

Financial Mail's Sikonathi Mantshantsha says something doesn't add up.

He says either either Eskom or McKinsey is lying about doing business with Trillian.

Let's unpack the lies. Eskom first said it did not pay a cent. Eskom then changed its mind and said it paid R500 billion.

Sikonathi Mantshantsha, deputy editor at the Financial Mail

Eskom first said that it did not have a contract. Now Eskom talks about a subcontract with Trillian.

Sikonathi Mantshantsha, deputy editor at the Financial Mail

Read: DA shadow minister Mazzone believes Eskom's finances are not in good shape

Which story must we believe, what they said in May or what they said yesterday?

Sikonathi Mantshantsha, deputy editor at the Financial Mail

Eskom's only got cash to keep the afloat for three months?

Meanwhile, Mantshantsha says Eskom is not in a strong financial position, despite contrary announcement's made during the utility's release of its annual results.

Also read: Eskom to pay bonuses despite reports financial woes

He argues that the power utility is in a worse position that it was this time last year and explains that Eskom is sitting on its last R20 billion.

Eskom can only sustain operations for about three months.

Sikonathi Mantshantsha, deputy editor at the Financial Mail

At the same time, Eskom has confirmed its former acting CEO Matsela Koko will face a disciplinary hearing.

Take a listen to his analysis on the papertrial and intricate web of discrepancies:

WATCH: Eskom explains why it paid Trillian R500m

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Read More
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