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South Africa’s Eskom sues Deloitte in a bid to reclaim $14m fee

South Africa’s state-owned power firm, Eskom, is targeting the giant consulting firm Deloitte, as it seeks to reclaim money allegedly lost to corruption over the past decade.

Ramaphosa, South Africa, IPOB
South African President, Cyril Ramaphosa

The firm has gone to court to demand Deloitte pay back $14m (£10m) that it claimed was improperly awarded.

Eskom alleged Deloitte charged five times more than its competitors for work done back in 2016, the BBC reports.

The company is struggling to repair the damage caused by a giant corruption scandal known in South Africa as “state capture”.

Deloitte insisted it did nothing wrong and would fight the claim in court.

But it is not the first giant multi-national company to get caught up in South Africa’s “state capture” scandal.

McKinsey, Bain, SAP, and KPMG have also been accused of working with corrupt local officials.

They have denied wrongdoing. But several have already paid the money back.

South Africa’s former President, Jacob Zuma, was kicked out of office in 2017 for allegedly presiding over the scandal.

His successor is now trying to restore trust in Eskom and other key state institutions.

But a string of recent power cuts has underlined the scale of the task ahead, and the extraordinary damage done to South Africa’s economy, and its young democracy, by years of systematic corruption. (BBC)

 

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