Power utility Eskom says it has finalised a settlement agreement with consulting firm McKinsey to pay back R 1 billion which was unlawfully paid out to the agency.

The settlement was signed in Johannesburg by McKinsey, Eskom, the Asset Forfeiture Unit and the Curator.

The settlement agreement is part of the parastatal’s turnaround strategy.

In October last year Eskom said in a statement that it was seeking the cooperation of McKinsey and Gupta-linked management consulting firm, Trillian in returning R1 billion and R564 million respectively which appears to have been unlawfully paid out.

Eskom Board Chair Jabu Mabuza says the move will not be the last as its members are committed to dealing decisively with improper and irregular contracts.