State-owned utility Eskom and consultancy PricewaterhouseCoopers (PwC) have reached a settlement in a High Court case initiated by the utility in 2021.

The case was aimed at setting aside a cost reduction contract known as the ‘Capital Scrubbing engagement’ and recover payments made to PwC and Nkonki.

Eskom says this engagement was scrutinised by the Judicial Commission of Inquiry into Allegations of State Capture, commonly known as the Zondo Commission.

Under the terms of the settlement, the disputed contract has been set aside and PwC will pay Eskom R43-million in a full and final settlement of Eskom’s claim against PwC.

Eskom says this settlement is a significant milestone in its ongoing action plans to enhance governance and accountability.

“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,” says Eskom Group CE Dan Marokane.

“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,” the utility expresses.

Meanwhile, in a separate statement, PwC says it participated in the cost reduction contract in “good faith” in what it believed was a compliant bidding process for the award of the Capital Scrubbing engagement.

The company posits, however, that the State Capture Commission found the Capital Scrubbing contract between PwC and Eskom to be irregular as a result of Eskom’s noncompliance with relevant procurement laws. 

“The court proceedings followed this finding. 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,” says PwC.