Dan Marokane, Group Chief Executive of Eskom said that Management was commitment to dealing with cases arising from the Zondo Commission has been instrumental in achieving this outcome.
Image: SImphiwe Mbokazi/Independent Newspapers
Eskom said that it had reached a settlement agreement with PricewaterhouseCoopers (PwC) to resolve an issue that was almost four years in the making.
The case aimed to set aside a cost reduction contract known as the “Capital Scrubbing engagement” and recover payments made to PwC and consulting firm, Nkonki.
Eskom said that this engagement was scrutinised by the Zondo Commission into allegations of State Capture.
On Wednesday, Eskom said that under the terms of the settlement, the disputed contract has been set aside, and PwC will pay Eskom R43 million in full.
The utility hoped that the settlement would be seen as a significant milestone in the company’s ongoing efforts to enhance governance and accountability
“Management’s commitment in dealing with cases arising from the findings of the Zondo Commission has been instrumental in achieving this outcome, and it underscores our dedication to restoring integrity within Eskom,” Eskom Group Chief Executive, Dan Marokane explained.
He said that Eskom will continue to focus on implementing generation recovery, strengthening governance, and tackling crime and corruption while future-proofing the organisation to enable energy security, growth, and long-term sustainability to the benefit of South Africa.
PwC said that it had participated in good faith in what it believed was a compliant bidding process for the award of the Capital Scrubbing engagement.
However, the firm had to acknowledge that the Zondo Commission found the
Capital Scrubbing contract between PwC and Eskom to be irregular as a result of Eskom’s non-compliance with relevant procurement laws.
“There was no evidence that any partner or staff member from PwC was involved in any unlawful or irregular conduct in the bid for or award of the Capital Scrubbing engagement,” PwC said.
The company emphasised that additionally there was no finding of any wrongdoing against PwC made by the Court in respect of the civil dispute between PwC and Eskom.
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