Eskom spent R1.9 billion on advisors

Eskom has spent R1.9 billion with consulting firm McKinsey & Co, according to a report in the Sunday Times.

The report stated that an internal review at Eskom found the amount was spent with the company over the past 12 years – 2005 to 2017.

McKinsey & Co was said to befit from a “lack of controls in Eskom’s processes”.

The large sum of money has also been linked to McKinsey & Co executives forming a relationship with its BEE partner, the Gupta-associated Trillian, which was used to take R1.6 billion from Eskom in a single transaction.

The Sunday Times stated that the review also found payments in contracts to McKinsey & Co were inflated, with certain increases up to 500%.

Eskom said the review was requested by the Hawks and the Special Investigating Unit.

The report follows years of trouble at Eskom, the latest of which includes Eskom running out of coal.

It was reported earlier in April that there were coal supply problems at numerous Eskom coal-fired power stations, which could lead to electricity supply issues.

Now read: Eskom’s money problems could threaten the economy

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Eskom spent R1.9 billion on advisors