Transnet says McKinsey owes it R1.2bn

10th December 2020

By: Marleny Arnoldi

Deputy Editor Online

     

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State-owned freight utility Transnet has confirmed that no final settlement has been reached with US-based consultancy McKinsey, but says the consultancy owes it more than R1.2-billion.

Transnet and McKinsey had discussions up until December 9, with the main point of dispute being the repayment of substantial interest earned on McKinsey’s fees.

Transnet explained that, in respect of contracts associated with Regiments Capital, the fee paid to McKinsey was R688-million.

In addition, according to Transnet’s calculation, the interest cost relating to these payments is close to R558-million.

The amount owed to Transnet, therefore, is just over R1.2-billion, and that is what the utility continues to insist must be repaid in full.

Both McKinsey and Regiments Capital are among the private sector companies facing the Zondo Commission of Inquiry into Allegations of State Capture.

A McKinsey official was set to testify at the Zondo Commission on December 10.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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