Eskom reaches a settlement with PwC over a cost reduction contract scrutinized by the Zondo Commission, marking a significant step in the utility's efforts to address state capture-related issues.
Eskom , South Africa's national power utility, has reached a settlement with the auditing firm PwC for R43 million. This marks a significant step in Eskom 's ongoing efforts to address issues stemming from the Zondo Commission 's findings on state capture . The settlement involves setting aside a cost reduction contract known as the 'Capital Scrubbing engagement' and recovering payments made to PwC and Nkonki.
The 'Capital Scrubbing engagement' was scrutinized by the Judicial Commission of Inquiry into Allegations of State Capture, commonly known as the Zondo Commission. Eskom initiated legal action in March 2021, seeking to declare the award of the contract to PwC unlawful, unconstitutional, and invalid. The utility had also sought to recover approximately R108 million in unlawful payments made through the contract, which was intended to realize savings on capital projects. Eskom stated that PwC filed a request in November 2022 for additional documents and a supplement to the record of decisions. Eskom responded to this request in December 2022. Eskom Group Chief Executive Dan Marokane emphasized the management's commitment to addressing cases arising from the Zondo Commission's findings, highlighting its dedication to restoring integrity within the organization. The utility intends to continue focusing on generation recovery, strengthening governance, tackling crime and corruption, and future-proofing the organization for energy security, growth, and long-term sustainability in the interest of South Africa and sub-Saharan Africa.
Eskom Pwc State Capture Zondo Commission Settlement
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