US consultancy firm McKinsey is under fire for their relationship with the Gupta empire. Their dealings with Gupta-owned Trillian have been flagged by Amabhungane.
Amabhungane journalists behind the #GuptaLeaks emails have uncovered the extent of the unethical plans of McKinsey for Eskom. McKinsey were planning to fork the energy firm of nearly R8bn in ‘consultancy fees’.
With Eskom being a state-owned entity, it is clear that the Gupta’s through the help of their company Trillian and consultancy firm McKinsey are trying to raid government owned businesses to line their own pockets.
McKinsey and Trillian projected they could extract around R8bn from Eskom. Despite the energy regulator says it desperately needs a tariff increase of 20% next year.
The US based consultancy are facing hot waters over their looting attempts. Corruption Watch have branded McKinsey’s conduct as a ‘gross contravention of the US Foreign Corrupt Practices Act’, and have already asked the Department of Justice for an investigation into this.
McKinsey have however defended themselves in a statement they made to Amabhungane. They maintain they’ve done nothing out of the ordinary and say they aren’t the only ones who charge such fees…
“A growing share of our work is undertaken ‘at risk’. This means we are paid based on agreed performance improvements, due to a direct result of our work.”
“The fees we charged are in line with similar projects we, and other firms, undertake in South Africa. and elsewhere around the world. We are proud of our work at Eskom. We stand fully behind the impact and value we delivered.”
McKinsey were initially hired by Eskom for R1bn and then immediately struck a deal with Gupta company Trillian for at least R266m of which Trillian got almost 30% of that for very little work.