Wednesday, 09 December 2020 22:19

Staff Reporter.

Photo Credit: Gallo Images.

McKinsey and Co said it would repay all the fees paid to it — estimated to be about R650m — for work done as part of Transnet and SAA contracts.

The state capture commission of inquiry made the announcement on Wednesday.

This undertaking comes after discussions initiated by the commission, which had investigated these contracts.

The amount covered by McKinsey’s undertaking has not yet been fixed with Transnet and SAA, but is likely to be about R650m, the statement said.

The commission said McKinsey worked alongside Regiments Capital at Transnet and SAA on contracts that have been investigated by the commission.

The commission also said McKinsey had assisted the commission with its investigations and had been transparent.

"Witnesses from McKinsey will be testifying on December 10 and will be questioned by evidence leaders of the commission," the statement read.

The commission said McKinsey did not work alongside either Regiments or Trillian at any state-owned enterprises other than Eskom, Transnet or SAA.

In the course of its engagements with McKinsey in advance of the testimony of McKinsey witnesses, the commission showed McKinsey evidence relevant to its contracts alongside Regiments at Transnet and SAA.

The commission said it expected companies doing business with the state to make clear that they would not retain the proceeds of contracts tainted by corruption, even if that corruption was the product of processes in which they were not involved.

McKinsey is one of a number of international companies caught up in South African graft probes mainly targeting firms doing business with state entities. SAP AG and KPMG LLP are two of the companies mentioned.

McKinsey has previously repaid about R1 billion to Eskom Holdings, the state power utility.