South Africa: Eskom - We Paid Deloitte R60-Million for Three Weeks of Work in Two Corrupt Contracts

Eskom implies in court papers that its own employees may have stolen McKinsey's ideas and offered them to Deloitte, which then charged Eskom inflated fees for their implementation. Of course, this is not to say McKinsey might be a victim of corruption. Quite the contrary. It might just be a case of there being no honour among thieves -- the scammers being scammed.

In contravention of its own processes, electricity supplier Eskom paid a unit of Deloitte just under R60-million for only three weeks of work three years ago, after having awarded the contracts illegally. This is Eskom's version in a claim to recover R207-million from Deloitte Consulting, a unit of the Big Four auditing firm, for work of dubious value done on two projects for the electricity producer.

Deloitte denies any wrongdoing and is defending the matter at the high court. While the corruption claims have nothing to do with Deloitte's audit function, it is one of many scandals the Big Four audit firm is having to navigate and may further erode its credibility if the charges stick.

In a contract that mirrors two other cases in which Eskom has already tasted victory and recovered some money from international...

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