PwC has settled its dispute with Eskom Holdings SOC Limited (“Eskom”). The dispute related to what has become commonly referred to as the “Capital Scrubbing” engagement.
The Capital Scrubbing engagement was considered by the Judicial Commission of Inquiry into Allegations of State Capture, Corruption and Fraud in the Public Sector including Organs of State (“State Capture Commission”).
PwC participated in good faith in what it believed was a compliant bidding process for the award of the Capital Scrubbing engagement. However, the State Capture Commission found the Capital Scrubbing contract between PwC and Eskom to be irregular as a result of Eskom’s non-compliance 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.
