Former Eskom executive testifies about Mckinsey’s relationship with power utility

Reading Time: 2 minutes

Former Eskom executive Prishotham Govender has told the State Capture Commission that consultancy firm Mckinsey introduced them to Gupta-linked Regiments Capital staff, while they were working on their contracts.

Govender told the Commission that former Eskom Chief Executive Officer Matshela Koko also requested documents and updates regarding the power utility’s multi-billion rand Master Plan Agreement contract with Mckinsey and Regiments.

Between 2015 and 2016, Mckinsey together with Regiments were awarded a contract worth more than R30 million. This was to help Eskom develop a corporate plan. However, McKinsey cancelled its contract with Regiments because it wanted to change to Trillian.

McKinsey says it never did any work with Trillian but subcontracted part of its work to Regiments.

“We had negotiated all of the packages except one which was the balance sheet unlocking activities. And we only started negotiating that with Mckinsey in and around November 2015. And Mckinsey introduced two individuals, in particular, Mr Wood and Ms Mthepu. Mckinsey had explained to us the negotiating team a company called Trillian was being formed .”

Gigaba’s testimony

Earlier, former Minister of Public Enterprises Malusi Gigaba refuted claims by former South African Airways (SAA) board chairperson Cheryl Carolus that there was hostility between them and it made it difficult for the national airline to function.

Gigaba insisted that during his tenure as the minister, all things happened within the confines of the Public Management Act, especially when it came to potential investors into Eskom, SAA, and Transnet.

During her testimony before the Commission, former SAA Chairperson, Cheryl Carolus said Gigaba made it unpleasant to work with him and this saw about 12 board members resign from SAA in 2011.

But Gigaba said all he did was to make sure that there was a rotational approach when it came to appointing board members.

Former Minister Malusi Gigaba and Former Eskom Executive Prishotham Govender testimony: