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Eskom Reaches Settlement with PwC Over Capital Scrubbing Engagement

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Eskom has announced that it has reached a settlement agreement with PricewaterhouseCoopers (PwC) to resolve a long-standing dispute involving the controversial “Capital Scrubbing engagement” contract. The dispute, which had been ongoing for almost four years, centered around Eskom’s efforts to annul the cost reduction contract and recover payments made to PwC and the consulting firm, Nkonki.

The Capital Scrubbing engagement came under intense scrutiny during the Zondo Commission’s investigation into allegations of State Capture.

On Wednesday, Eskom confirmed that under the terms of the settlement, the disputed contract has been nullified, and PwC will pay Eskom R43 million in full. The power utility views this settlement as a significant step toward improving governance and accountability within the company.

“This agreement is a key milestone in Eskom’s efforts to restore integrity, strengthen governance, and improve transparency,” said Eskom Group Chief Executive, Dan Marokane. “Our commitment to addressing issues arising from the Zondo Commission’s findings has been pivotal in achieving this outcome.”

Marokane also reiterated Eskom’s focus on improving generation recovery, strengthening governance, combating crime and corruption, and future-proofing the utility to ensure energy security and long-term sustainability for South Africa.

PwC’s Response:

PwC responded by stating that it participated in good faith in what it believed to be a compliant bidding process for the Capital Scrubbing engagement. The firm acknowledged, however, that the Zondo Commission found the contract to be irregular due to Eskom’s failure to comply with relevant procurement laws.

“While the Zondo Commission found the Capital Scrubbing contract irregular, there was no evidence of unlawful or improper conduct by any PwC partner or staff member during the bidding or awarding process,” PwC said in a statement. The firm further clarified that the Court had not found any wrongdoing on PwC’s part in the civil dispute with Eskom.

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