8 March 2018

South Africa: Scorpio - McKinsey's Double Jeopardy Conundrum Over R1 Billion Payback to Eskom

analysis

McKinsey & Co's offer to pay back that controversial R1-billion to Eskom is not quite as clear-cut as the global consulting firm has made out. It has a catch - one that sounds more like a get-out-of-jail free card. By JESSICA BEZUIDENHOUT for SCORPIO.

In its bid to contain the damage around the R1-billion it received from the South African power utility, consulting firm McKinsey & Co seeks a guarantee that it would not be punished twice.

For several months, the company has been at pains to convince the South African public that it wants to pay back the money, but just doesn't know how to do this.

Now, for the first time, McKinsey has shed light on what it calls the need for a "safeguard" - essentially a condition - for that repayment to Eskom.

In a legal challenge filed against a preservation order obtained by the NPA's Asset Forfeiture Unit in December 2017, McKinsey raises a concern about double jeopardy, a legal principle that protects an accused person or entity from being punished twice for the same criminal offence.

"While prepared to return the funds in question, McKinsey should not be exposed or be subjected to double jeopardy...

South Africa

Eskom Scraps 0% Wage Offer as Gordhan Steps in

Power utility Eskom has taken its 0% wage increase off the table and resumed negotiations with unions after an… Read more »

See What Everyone is Watching

Copyright © 2018 Daily Maverick. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 800 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.