Parliament - R22 million has been allocated for multi-national law firm Denton’s three-month inquiry into Eskom’s financial woes, Public Enterprises Minister Lynne Brown said on Monday.
“The costs have been capped at R22 million,” the minister said in response to a written parliamentary question by the Freedom Front Plus.
In reply to a futher question on the subject from the FF Plus, she indicated that the funds would come from Eskom’s own budget.
“The funds will be reprioritised internally and costs re-alocated to this accordingly.”
Brown stressed that Denton was appointed in accordance with the utility’s procurement rules and added: “The attorneys have not done any work for Eskom previously.”
It was reported last month that Denton said on its website that it had advised the utility in the past, raising the spectre of a conflict of interest.
Denton was appointed in April after Eskom parted ways with turnaround consultant Nick Linell, who was originally named to lead the inquiry by former chairman Zola Tsotsi.
The board cancelled his brief because it believed Tsotsi did not follow the right procedures when he selected him.
ANA