Advocate Geoff Budlender’s report exposes how global consulting giant McKinsey got into bed with Trillian, in a “sham” contract that would milk Eskom of hundreds of millions of rands. By AMABHUNGANE

Geoff Budlender, the advocate appointed by former Trillian chair Tokyo Sexwale to probe “state capture” allegations against the company has delivered a damning report, despite what he characterises as Trillian's attempts to shut down his probe and starve it of information. Here are the highlights. By AMABHUNGANE.

In Part 1 of the #Guptaleaks: The McKinsey Dossier, we detailed how global consultancy McKinsey lined up a R9.4-billion bonanza from Eskom with the help of Gupta-linked Trillian Capital Partners. We also showed how Eskom executives ignored warnings from their own legal team that the contract favoured McKinsey and did not comply with the law. In Part 2, we show how the flawed contract – cancelled after queries from National Treasury – was nevertheless used to justify a massive settlement for McKinsey and its de facto empowerment partner, Trillian. By Susan Comrie for AMABHUNGANE and Pauli van Wyk for SCORPIO.

Eskom has moved to reclaim R1.6-billion paid to McKinsey and Trillian for a consulting project that left the power utility “open to excessive economic exposure”, according to a confidential report. By Susan Comrie for AMABHUNGANE and Pauli van Wyk for SCORPIO.

Eskom paid Trillian R595-million without a valid contract while lying to the public about doing so. This is well established by now. But how the Gupta-linked company was sneaked onto Eskom’s payment system – a system designed to prevent fraud – has always been a mystery. A series of interviews and leaked documents show that suspended chief financial officer Anoj Singh and his management team stand accused of bending over backwards to get Trillian their payday, sometimes bullying mid-level officials into fabricating documents. By Pauli van Wyk for SCORPIO and Susan Comrie for AMABHUNGANE.

When global consulting firm McKinsey “came clean” last Tuesday about its work at Eskom, it admitted it was not careful enough about associating with Trillian, its de facto local partner. But it claimed not to have known that Gupta lieutenant Salim Essa owned most of Trillian. Now we show that at least R30-million flowed from Regiments, McKinsey’s longstanding local partner at Transnet, into companies associated with a notorious Gupta-Essa money laundering channel. McKinsey refuses to comment on the payments, styled as fees to “business development partners”. Once again, it was the major beneficiary of the resultant contracts. By Susan Comrie for AMABHUNGANE.

Eskom ignored five legal opinions, some from within its own ranks, warning the power utility that its contentious “at risk” consulting contract with McKinsey was probably illegal. So nervous about the contract was McKinsey that its own in-house lawyer concluded Eskom would have to be “brave” in order to sign, newly leaked McKinsey documents show. Eskom should have been in no doubt that its proposed multi-billion rand contract was on shaky ground. They signed it anyway. By Pauli van Wyk for SCORPIO with AMABHUNGANE.

McKinsey’s “investigation” found nothing more to say about its dealings with Eskom and the Gupta-linked company Trillian than what the firm has already admitted to. Or what South Africans pieced together months ago thanks to whistle-blowers, civil society and journalists. In fact, neither the word “fees” nor the figure “R9.4-billion” in projected work for Eskom were mentioned in the global consulting giant’s lengthy statement on Tuesday. And yet, McKinsey said – they’ll pay back the money. By PAULI VAN WYK.