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'Deloitte’s contracts with Eskom seemingly corrupt and part of State Capture'

15 January 2020 10:56 AM
Tags:
Eskom
Deloitte
Kieno Kammies
Jabu Mabuza
amaBhungane Centre for Investigative Journalism
SUSAN COMRIE
procurement
Thiru Pillay
Longsuffering taxpayers may have a reason to be furious with UK-based Deloitte, one of the largest accounting firms in the world.

(To learn more about this, read “The dirt on Deloitte’s consulting deals at Eskom”)

In October last year, Jabu Mabuza (Eskom’s former Chairperson) filed an affidavit in which he demanded that UK-based Deloitte – one of the world’s four largest accounting firms – pay back R207-million in consulting fees from contracts dating back to 2016 when Anoj Singh was Eskom’s Chief Financial Officer.

…pure corruption on the part of Deloitte and the Eskom executives who facilitated these contracts with absolutely no regard for Eskom’s sustainability…

Jabu Mabuza, former Chairperson - Eskom

This is feeding trough bullshit. This is what immiserates our country and bankrupts it.

Consultant (when amaBhungane showed him a breakdown of Deloitte’s fees)

Deloitte argues that – even if the contracts were awarded irregularly – Eskom got value for money and shouldn’t be made to pay anything back.

The world is in a very different place today. When you look at what was happening in 2016; our environment is very, very different. In hindsight, when you look at it, you wish you had done things differently, but the question is, ‘Did we add value?’ and I think we did. And what was our intent? Was our intent to go and defraud and exploit Eskom? Definitely not.

Thiru Pillay, Managing Direcytor - Deloitte Consulting Africa

Kieno Kammies interviewed Susan Comrie, an investigative journalist at amaBhungane Centre for Investigative Journalism.

We started looking at Deloitte in 2018… Something struck us as very odd… [but] we parked the story because we didn’t have enough to go on. Then Eskom filed this affidavit…

Susan Comrie, investigative journalist - amaBhungane Centre for Investigative Journalism

The version we have from Deloitte in 2018 has changed in 2019…

Susan Comrie, investigative journalist - amaBhungane Centre for Investigative Journalism

Procurement processes… Deloitte blew through every one of those regulations. They submitted unsolicited bids, signed off by Eskom officials, sometimes within a day… The whole thing is designed to ensure that Deloitte gets the contracts handed to them on a silver platter.

Susan Comrie, investigative journalist - amaBhungane Centre for Investigative Journalism

Deloitte said they were told they didn’t need to go through a procurement process… We have different versions from Deloitte, each one raising a different problem for them… It is crazy!

Susan Comrie, investigative journalist - amaBhungane Centre for Investigative Journalism

Eskom employs more than 40 000 people. They needed to find out if any one of those 40 000 people could’ve done the work. There is no indication they did that. Instead, there was a blank cheque to bring in consultants…

Susan Comrie, investigative journalist - amaBhungane Centre for Investigative Journalism

For more detail, listen to the interview in the audio below.

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15 January 2020 10:56 AM
Tags:
Eskom
Deloitte
Kieno Kammies
Jabu Mabuza
amaBhungane Centre for Investigative Journalism
SUSAN COMRIE
procurement
Thiru Pillay

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