Deloitte taken to court in South Africa over $14m fee

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South Africa is targeting the giant consulting firm Deloitte, as it seeks to reclaim money allegedly lost to corruption over the past decade.



The state-owned power company Eskom has gone to court to demand Deloitte pay back $14m it says was improperly awarded.
Eskom alleges Deloitte charged five times more than its competitors for work done back in 2016.
The company is struggling to repair the damage caused by a giant corruption scandal known in South Africa as “state capture”.



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Deloitte insists it did nothing wrong and will fight the claim in court.
Deloitte denied any wrongdoing and said it would put forward its version in court.



“Deloitte Consulting has been engaging in good faith with Eskom on this matter for some time now in order to assist Eskom to understand the processes followed and the value that Deloitte Consulting has delivered to Eskom,” it said in a statement.



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 money back.
//Reuters

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