Eskom and PricewaterhouseCoopers (PwC) have reached a R43 million settlement in a high court case initiated by Eskom in 2021 related to a disputed cost reduction contract.
According to Eskom, the case aimed to “set aside a cost reduction contract, known as the ‘Capital Scrubbing engagement’, and recover payments made to PwC and Nkonki”.
Eskom Group Chief Executive, Dan Marokane said: “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”.
The power utility explained that the contract had been “scrutinised by the Judicial Commission of Inquiry into Allegations of State Capture” - also known as the Zondo Commission.
“Under the terms of the settlement, the disputed contract has been set aside, and PwC will pay Eskom a sum of R43 million in a full and final settlement of Eskom’s claim against PwC. This settlement is a significant milestone in our ongoing action plans to enhance governance and accountability,” Eskom said.
The power utility reaffirmed its commitment to dealing with corruption, while strengthening its generation recovery.
“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 and sub-Saharan Africa,” Eskom said.
For its part, PwC issued a statement, acknowledging that it had learned “important lessons” throughout the civil dispute process.
“PwC participated in good faith in what it believed was a compliant bidding process for the award of the Capital Scrubbing engagement. However, the State Capture 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. Similarly, there was no finding of any wrongdoing against PwC made by the court in respect of the civil dispute between PwC and Eskom.
“We are pleased to have finally concluded this longstanding civil dispute. Going through this process afforded us the opportunity to reflect and learn some important lessons,” PwC said. – SAnews.gov.za
