Eskom is in talks to recover the interest on money paid to global consultancy McKinsey & Company, the electricity producer has confirmed, according to a Business Day report. The utility said it was in ‘protracted talks’ with the management consultancy to recover the capital amount, claim back VAT and recover interest accrued on the capital.

Last week McKinsey refunded Eskom the R902m it received from the utility, part of the R1.6bn it shared with Trillian Capital – money that was stolen by executives at the utility. Trillian was then majority-owned by Salim Essa, a close associate of the Gupta family. McKinsey spokesperson Bonita Dordel reportedly told Business Day on Sunday the consultancy was only paying ‘just the full fee and not the interest’, which she said was the ‘full and final’ obligation McKinsey had on the matter.

However, McKinsey changed its mind on paying the interest the next day. Kevin Sneader, the firm’s global managing partner, caved under pressure after giving a public apology for the firm’s role in the theft on Monday. Pressed by prominent business people at a forum at the Gordon Institute of Business Science to repay the interest, Sneader said the firm ‘will have a discussion with Eskom about the interest. We have no desire to profit from that R902m. We will engage with Eskom on it.’

Eskom has now confirmed the matter is being discussed. ‘Regarding interest, discussions have been entered into and are ongoing. An announcement will be made in due course,’ the utility said. Eskom also said it had instituted court action to recover the Trillian portion and the case would be heard in December.

Full Business Day report