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Mail & Guardian
4 days ago
- Business
- Mail & Guardian
Consulting companies are profiting off the climate crisis — report
Major consulting companies and some of the big accounting firms in South Africa are cashing in on the climate crisis, a new report has revealed. Major consulting companies and some of the big accounting firms in South Africa are cashing in on the climate crisis, despite conflicts of interest, and a lack of expertise and ambition, undermining South Africa's The investigation highlighted that management consultants and institutions linked to donor countries are receiving the lion's share of the grant funding meant for South Africa's just energy transition projects. The international financial pledge towards South Africa's shift from coal to cleaner sources of energy — while ensuring that coal-dependent communities and workers are not left behind — is $12.8 billion and $2.8 billion of pledged funds has actually been committed to projects, according to Open Secrets. A total of $100 billion is said to be needed for the country's just transition. 'Much of the grant funds are caught in a circular process that sees little money arriving on the ground in South Africa,' the report states. 'Instead, it 'passes through' South Africa only to again make its way into the hands of international platers. Where it is paid to South African entities, many of them are private consultants working for international firms.' The findings show that 65% of the committed grant funds have gone to private corporations and organisations as implementing entities and less than 25% of the grant monies have gone to local implementing entities, including non-governmental organisations, public sector institutions and universities, lead investigator Zen Mathe said. 'We have also found that often there is a direct link where the money comes from — so the donor country — and where the money goes, so the implementing entity and, as a result, consulting firms, are playing a fundamental role in shaping South Africa's response to the climate and energy crisis,' Mathe told a forum on the report. 'It's concerning that private consultants have been given this opportunity to corner the market for advice on the climate crisis and a just transition, with little to no scrutiny.' The report shows that most management consultancies have made fortunes by servicing the interests of fossil fuel companies and some of the world's largest polluters. These companies' climate advice also 'routinely lacks the ambition required to push for the systemic change that the climate crisis demands'. The report questions whether these firms have the necessary skills and expertise to do the work they are contracted to do. The use of consultancy firms to guide policies on the just transition undermines the expertise and capacity within the state and is a risk to democracy, it claims. 'The undermining of state capacity and capture of the policy space by corporate interests closely tied to fossil fuel interests are risks to the democratic process. Where the voices and interests of the public are sidelined, the risk is heightened.' It added that a lot of these discussions were happening behind closed doors, with little transparency. The Boston Consulting Group (BCG) has been named as one of the major firms benefiting from the climate crisis, alongside McKinsey & Company and Bain, which were also implicated during an investigation into state capture in South Africa. 'BCG has positioned itself as a leader on climate-related consulting around the world and cemented itself as a key partner in South Africa's energy space,' the Open Secrets report states. This is despite having ties with petrostate Saudi Arabia and companies known to be major polluters, including Saudi Aramco, Shell and ExxonMobil, as well as being a consultant for Sasol — one of the world's worst polluters. 'Despite BCG's clear conflicts of interest, it has continued to play a key part in global climate negotiations,' the report states. The consultancy was a partner at the 26th UN climate change conference (COP26) and also played a role at COP27, before it was chosen as the 'principal strategy and action partner' for COP28 in 2023, which was held in the United Arab Emirates. According to the report, a record number of fossil fuel lobbyists — 2 456 — were present at the conference that year. 'BCG's partnerships and choice in clients, who are amongst some of the top polluters in the world, has called into question its role as a strategic partner for the last three global climate conferences,' Open Secrets said. 'If the aim is really to pursue the transition to a low-carbon economy, it should surely be of concern that a firm that applauds fossil fuel companies for supposed 'innovation' — all while those companies double down on models incompatible with addressing climate change — should play any lead role in the most important global negotiations to tackle climate change.' The report said from 2019 to 2021, BCG took on over 750 climate-related projects for over 300 clients and it made around $1.1 billion from climate consulting in 2021, which could account for almost a third of its sales by 2027. In response to questions from Open Secrets about its work on South Africa's just energy transition, BCG said: 'As is already a matter of public record, our various efforts with multi-stakeholder coalitions (e.g. NBI [National Business Initiative], Busa [Business Unity South Africa], The Energy Council of South Africa) have involved many contributors from many different organisations as part of transparent consultation processes, with BCG providing analytical and technical modelling support. 'We are proud of our contribution to South Africa's JET,' it added. Sasol confirmed that it takes consultation from BCG and various other firms on its projects, adding: 'We do not publicly disclose the specifics of all our consulting engagements or their ongoing status.' McKinsey & Company told Open Secrets that it has been open about its work with fossil fuel clients and 'hard-to-abate sectors and see no contradiction with our commitment to the energy transition … 'We are proud to work with clients in all of these sectors — including in oil and gas.' The big four accounting firms, EY, Deloitte, KPMG and PwC, have punted climate-related and environmental social and governance projects, but only two, Deloitte and PwC, are currently working on just transition-related projects and benefiting from the grants portion of just energy transition project funds, according to the report. These two firms have also been In July 2024, 'just transition' was officially defined under the Climate Change Act as 'a shift towards a low-carbon, climate resilient economy and society and ecologically sustainable economies and societies which contribute towards the creation of decent work for all, social inclusion and the eradication of poverty.' The implementation and interpretation of the Act requires decision-making that considers the needs of the most vulnerable, head of legal at Open Secrets Ariella Scher said. 'It's from that perspective that this report demonstrates that that doesn't seem to be what's happening. What is happening is that the most powerful, and those who have always been in charge of our economies, are just continuing to benefit,' Scher said. The authors recommended that money for the just energy transition be funnelled to the South African state, not only to private sector institutions, and should be in compliance with the Public Finance Management Act (PFMA). Additionally, the funds must be monitored and recorded in a publicly accessible repository and 'spent in a manner that is determined by the South African state itself', said Mathe. 'This allows for financial oversight, but also really importantly, democratic oversight because it subjects the spending of state monies to financial audits parliamentary oversight and so we have greater accountability, if we're following what the PFMA says,' Scher added. Open Secrets is also calling for more regulation. 'There must be public debate about how we hold these unelected private technocrats to account. We must critically consider the impact on South Africa's pursuit of an energy transition that is just and benefits the most vulnerable in our society and those that are most immediately affected in our society,' said Mathe
Daily Maverick
4 days ago
- Politics
- Daily Maverick
The Frans Mathipa case: Ramaphosa's ultimate hot potato
The arrest last week of seven members of the SANDF for the murder of Hawks investigator Frans Mathipa raises many questions about the real motive for his murder. But it could also lead to incredibly troubling questions about the situation in the SANDF, and whether its current leadership knew the truth when they denied there was a squad in the force that tortured and murdered people. In December 2023, the head of the SANDF, General Rudzani Maphwanya, was categoric. 'For the record,' he said, 'there are no military squads in the defence force that exist to carry out acts of torture and murder, for whatever reasons. The SANDF stands for the defence and the protection of the people and will always act within the confines of the law and the Constitution.' But last week 12 people under his ultimate command were arrested in connection with the murder of Hawks investigator Frans Mathipa. As Open Secrets has explained, Mathipa was investigating the illegal and violent abduction of the Ethiopian national Abdella Hussein Abadiga from the Mall of Africa in December 2022. Open Secrets has also linked cars used in that abduction to vehicles at the Simon's Town dock when the Russian vessel the Lady R docked there. These vehicles are known to be owned by the Special Forces unit of the SANDF. Also, it has been pointed out that Mathipa was shot dead while driving a moving car, a hit that reportedly could only be carried out by someone with military training. There are so many questions around this, some of which may force President Cyril Ramaphosa to act. The importance of this cannot be overstated. This is a group of Special Forces soldiers who are accused of killing a senior police investigator. It would seem likely the Police Minister Senzo Mchunu would have informed the Defence Minister Angie Motshekga what the Hawks were going to do before they made last week's arrests. And both might well have informed Ramaphosa. For the moment, it appears the system worked, the police were able to make the arrests and faced no violent opposition. Considering that these are members of a Special Forces unit, this is no small victory. But it is only the beginning of where this could lead. What did Maphwanya know? It would appear the best case scenario here is that when Maphwanya issued his denial he genuinely did not know the truth. Even if that is the case, a Commander-in-Chief might well be entitled to demand answers about how he did not know. It might not be enough to rely on reports that are kept secret. A democratically elected head of state would want to know how Maphwanya was unaware, and how he could make sure this would not happen again. But this is the best-case scenario. Most of the others are worse. If Maphwanya knew about these activities then he surely cannot stay in the job. It would be proof that he is prepared to allow people under his command to kill police officers. Important reporting over the weekend by News 24's Erika Gibson shows the SANDF is going to pay for this squad's legal defense, including briefing senior counsel. This might well suggest that Maphwanya, or at least the institution he heads, is either going to argue these men had a proper motive that he sanctioned, or that they are not guilty (in which case, which militarily trained assassin killed Maphwanya?) There are other scenarios that are not as bad as that, but still pose problems. It has been claimed that when Abadiga was abducted, the US Treasury Department had put him on a sanctions list, and that he was seen as a person allegedly affiliated to Isis. Nearly 20 years ago, in 2006, a man called Khalid Rashid was accused of being connected to terrorist networks. He was a Pakistani national who was living in Estcourt in KwaZulu-Natal. When he disappeared the lawyer Zehir Omar launched a series of court cases forcing Home Affairs to reveal where he was. Through a series of court rulings and one or two strange incidents (including a document that mysteriously arrived in Omar's food hamper) it was eventually confirmed that Rashid had been extraordinarily renditioned. In other words, he had been removed from the country at the request of American and British intelligence agencies. Perhaps Abadiga suffered a similar fate. And while that would be illegal, it might well fall under the ambit of the SANDF trying to protect South Africans from threats. Some people might accept that explanation. Maybe. But this still does not explain the other claim against this SANDF unit, that it was involved in torture. The case of Pule Nkomo, who told Open Secrets how he had been tortured, might suggest there is more to this unit than just the Abadiga case. A relatively small incident might well suggest this group has a pattern of breaking the law. Among the charges they face is one of fraud. They lodged a claim with Outsurance claiming the BMW that they used in the alleged hit had been stolen. One might have some sympathy for the insurance investigators at Outsurance. Are they really going to probe what this unit was doing? If it is the same group of people who were involved, this shows a particular pattern. And if it was a pattern, then it would seem incredible that Maphwanya did not know what this group was doing. SANDF vs SAPS Within all of this is another set of complicated dynamics. There is a general perception that the SAPS will deal with people within South Africa, while the SANDF will protect those people from threats from outside the country. Of course, this line is often blurred, and citizens themselves demanded the SANDF help protect them during the violence in July 2021. And the SANDF has a constitutional duty to protect South Africans. The stakes here are incredibly high. The SANDF and the SAPS are the two biggest organisations that employ people and give them firearms. For one to attack the other, as this unit is alleged to have done in killing Hawks investigator Mathipa, may have the potential to spiral out of control. It is important to remember that the fact that the SAPS were able to make these arrests shows this prospect is incredibly unlikely. But it has happened in other countries with disastrous results. In Lesotho the police and the military ended up on opposite sides of a political dispute. In at least one case there was a shootout between members of the two groups. The person who can play the biggest role in ensuring that this does not happen is obviously Ramaphosa. He might well need to ask serious questions around Maphwanya. As usual, the most important questions will probably be: What did Maphwanya know? And when did Maphwanya know it? But for the moment it appears that he is supporting people who are accused of killing a senior member of the police. This issue will not go away. Instead it will require active political management. Ramaphosa may have to make decisions that he, or any leader, would rather avoid. DM
IOL News
5 days ago
- Business
- IOL News
Climate Commission rejects allegations of corruption in energy transition funding
The report, titled The Climate Consultants; How management consultants cash in on the climate crises, outlines serious allegations regarding the influence of private sector technocrats on government climate policy, while simultaneously consulting for fossil fuel companies implicated in worsening the climate crisis. Image: EPA/RITCHIE B. TONGO The Presidential Climate Commission (PCC) has poured cold water on a report by advocacy group Open Secrets, which accuses consultancy firms and their intertwined relationships with business interests of systematically looting funds allocated for South Africa's Just Energy Transition (JET). The report, titled The Climate Consultants; How management consultants cash in on the climate crises, outlines serious allegations regarding the influence of private sector technocrats on government climate policy, while simultaneously consulting for fossil fuel companies implicated in worsening the climate crisis. The report describes how much of South Africa's Just Energy Transition (JET) plan is being financed by a $12.8 billion pledge from France, Germany, the United Kingdom and the European Union. Most of the money so far provided is in the form of concessional loans, which means it still has to be paid back, albeit at favourable rates. The terms and conditions of these loans are not made known. It claimed that around 65% of the committed grant funds, according to the JET Grants Register, have gone to private corporations and organisations as implementing entities. Alarmingly, less than 25% of grant capital has been allocated to local public institutions—such as NGOs and universities—highlighting a disconnect between donor intentions and real, local impact. "More often than not, there is also a direct link between where the money comes from (the donor country) and where the money goes (the implementing entity),' noted the report, led by Open Secrets investigators Zen Mathe, Michael Marchant, Ra'eesa Prather, Luvano Ntuli and Ariella Scher. It pointed out that three large multinationals known as the Big Three – McKinsey, Bain and Boston Consulting Group (BCG) – and the consulting arms of the Big Four multinational accounting firms – Deloitte, EY, KPMG, and PwC – also continued to do 'lucrative work' for fossil fuel companies including Sasol. The PCC on Wednesday welcomed the release of the report, saying it was part of society's scrutiny to the country just transition and overall economic reform. However, the PCC spokesperson, Blessing Manale, said the report "makes no substantiated negative finding against the PCC on any matter even though such are reflected and exaggerated as a smoking gun or nearer to the truth or we reject." "By its own admission, the report acknowledges the PCC as the most transparent institutions the investigators interacted with during the sourcing of their information. Its further emphasis that we strongly refuted such allegations with factual verifiable rebuttals," Manale said. Manale said the PCC had noted some factual inaccuracies in the report and will make submissions to Open Secrets for a correction of both the digital and hard copies of the report in the interest of fairness and factual reporting. He said the Commission mobilises and procures expert input research from a wide range of public and private research organisations, including universities, NGOs, and private consultants. "All advice is thoroughly processed by the Secretariat, carefully considered by the Commission, and cross-referenced with a diversity of stakeholder views before the Commission pronounces its views on any matter," Manale said. Part of the report's recommendations are that as far as possible, JET Programme monies should be routed through the South African State, spent in compliance with the Public Finance Maagement Act, and allocated for spending through a process of climate-responsive budgeting. "A key component of this will be regulating private companies in alignment with the Climate Change Act. Moreover, it remains urgent to introduce effective regulations for themanagement consulting sector," teh report recommended. "Currently, consultants do not have a regulatory body to hold them accountable for their conduct. Even when consultants are exposed for se-rious misconduct, they remain largely un-accountable for the much larger social costs of their actions." BUSINESS REPORT
Eyewitness News
5 days ago
- Eyewitness News
NPA confirms 12 murder-accused SANDF members facing two other counts of murder
Nokukhanya Mntambo 2 July 2025 | 6:52 South African National Defence Force (SANDF) Murder SANDF army defence force soldiers JOHANNESBURG - The National Prosecuting Authority (NPA) has confirmed that the 12 South African National Defence Force (SANDF) members charged with the 2023 murder of a Hawks' investigator are also facing two other counts of murder. Frans Mathipa was shot in the head on the N1 near Hammanskraal, while probing claims that some members of the SANDF special forces were behind the abduction of two foreign nationals at the Mall of Africa. The group appeared before the Randburg Magistrates Court in Johannesburg on Tuesday, where new details about the case emerged. At the time of his murder, Hawks investigator Mathipa had applied for a Section 205 subpoena to get classified documents that could shed some light on the 2022 kidnapping. According to Open Secrets, on or before the deadline for the SANDF to respond to the application, Mathipa and army officials had agreed to halt the process while they negotiated access to the requested information. The SANDF maintains that the operatives were at the Mall of Africa on 29 December 2022, for a training exercise and that the abduction of an alleged ISIS associate and his bodyguard was a coincidence. While it was never confirmed at the time, the NPA's spokesperson in Gauteng, Phindi Mjonondwane, said the kidnapped men may have also been killed by the special forces. 'I can just give a hint to say that we'll be relying on the case of Francis Rasuge in proving the other two murder charges, that's as far as we can go.' The 12 accused are set to be back in court for a continuation of their bail hearing on Thursday. The SANDF has consistently denied claims that the special forces unit is rogue, adding that claims of torture, illegal arrests, and murder are untrue. Already in the dock for the 2023 murder of Hawks investigator Frans Mathipa - NPA GP spox Phindi Mjonondwane has confirmed 2 more murder charges for the 12 SANDF special forces linked to the disappearance of an ISIS associate and his bodyguard taken from the Mall of Africa. — EWN Reporter (@ewnreporter) July 1, 2025
Daily Maverick
7 days ago
- Business
- Daily Maverick
Just Energy Transition: How consulting firms profit amid climate crisis challenges
As billions pour in for South Africa's Just Energy Transition, a damning report by Open Secrets reveals how the very consultants advising top polluters are now reaping the profits from the country's Just Energy Transition, and operating with little public oversight. In the race against climate change, South Africa stands at a juncture, attempting to navigate a complex and costly transition from its coal-dependent past to a sustainable future. Billions of dollars have been pledged, policies are being crafted, and the stakes for communities, workers, and the planet could not be higher. Yet, a new report by Open Secrets, The Climate Consultants: How management consultants cash in on the climate crisis, casts a long, disquieting shadow over this endeavour. The report reveals a pervasive and often opaque influence of private management consulting firms, many with alleged conflicts of interest and questionable track records, positioning themselves to reap significant profits from South Africa's Just Energy Transition (JET). The report, authored by Zen Mathe, Michael Marchant, Ra'eesa Pather, Luvano Ntuli, and Ariella Scher from Open Secrets, digs into how management consultants and institutions linked to donor countries receive the lion's share of the grant funding. During the report's launch, Mathe said they found that about 65% of the committed grant funds have gone to private corporations and organisations as implementing entities, and less than 25%of the grant monies have gone to local implementing entities such as non-governmental organisations, public sector institutions and universities. 'We've also found that often there is a direct link between where the money comes from (the donor country) and where the money goes to (the implementing entity). And as a result, consulting firms are playing a fundamental role in shaping South Africa's response to the climate and energy crisis, whether it's in the workforce, Africa's largest fossil fuel companies and banks, or for public institutions and governments. And they do so despite serious conflicts of interest.' She told Daily Maverick that much of the expenditure on South Africa's energy transition had happened in a system parallel to that of the state and had not been subject to sufficient public oversight. Findings from the report The report unearths a troubling paradox. As governments and corporations scramble for solutions to the climate crisis, the global market for management consulting has exploded, surpassing $1-trillion in 2023. Major players like Boston Consulting Group (BCG), McKinsey and the consulting arms of the Big Four accounting firms have aggressively expanded their Environmental, Social, and Governance (ESG) offerings, marketing themselves as indispensable guides to decarbonisation. But, Open Secrets' investigation lays bare alleged conflicts. These same firms frequently advise the world's largest polluters (fossil fuel giants like Sasol, ExxonMobil, and Saudi Aramco) on strategies that, in many cases, entrench their carbon-intensive operations. McKinsey, for instance, has been revealed to work for 43 of the top 100 corporate polluters, while simultaneously drafting energy transition documents that propose trillions in new oil and gas investments. Boston Consulting Group, despite being the consulting partner for climate change summits COP26 and COP28, proudly listed Saudi Aramco among its most innovative companies and has advised Sasol on its 'Future Sasol' strategy, which includes an ongoing focus on green hydrogen. Can these firms profiting from the very industries driving the climate crisis genuinely guide a 'just' transition away from them? The report suggests their advice often lacks the ambition for systemic change, favouring 'techno-managerial' and market-based solutions like carbon offsetting, which critics argue benefit large polluters and sideline deeper social and economic reforms. The surge in demand for climate-related consulting stems from several key developments. The 2015 Paris Agreement, with its focus on nationally determined contributions (NDCs), prompted governments worldwide to seek external advice for their climate commitments. Concurrently, the private sector's growing recognition of climate risks and new financial reporting requirements created a lucrative market for climate advice. Consultancies, leveraging their reputation, have rapidly expanded their 'dedicated capacity for climate-related consulting work'. Giants like Boston Consulting Group launched their Centre for Climate and Sustainability in 2021, boasting more than 550 specialists and becoming the official Consultancy Partner for COP26 in Glasgow. Not to be outdone, McKinsey launched McKinsey Sustainability in May 2021, claiming more than 3,500 consultants working in climate and Environmental, Social, and Governance sectors, beefing up its offerings through acquisitions like UK-based Vivid Economics. Lack of progress The report raises the question: Despite this consulting boom, why is climate action still 'moving far too slowly' with far too little consideration to its impact on the most vulnerable? The centrality of these firms, it argues, is an important cause of the lack of progress. The report states that the use of consultants further undermines expertise and capacity within states. This, according to the authors, leads to a serious risk of over-reliance on consultants that weakens the ability of states to develop their own climate and energy policies. Below, we take a look at some case studies and implicated agencies from the report. BCG's response Boston Consulting Group (BCG), a prominent firm highlighted in the Open Secrets report, provided Daily Maverick responses to several key allegations. Regarding its work with major fossil fuel companies while simultaneously participating in global climate negotiations, BCG stated: 'BCG works with the energy industry at large, including oil and gas companies, given the critical role they play in breaking the hard trade-offs around the world's energy trilemma. 'We work on improving and decarbonising supply and accelerating investments in lower-carbon energy sources. Furthermore, we believe that supporting the decarbonisation of heavy emitters is also crucial to achieve the decarbonisation of existing industries and assets.' On its controversial Most Innovative Companies list, which included Saudi Aramco, Shell, and ExxonMobil in 2023, BCG said that its list 'recognises firms driving measurable change through technology, strategy, and business model evolution. Inclusion reflects innovation as it exists, including within legacy sectors that must evolve.' Addressing concerns about promoting natural gas as a transition fuel and advocating for green hydrogen investments despite methane leakage and viability doubts, BCG said: 'BCG's work with various multi-stakeholder coalitions (e.g. NBI, Business Unity South Africa, the Energy Council of South Africa) is focused on providing analytical and technical modelling support. 'Rather than prescribing solutions, BCG uses data-driven analysis to help stakeholders understand the trade-offs between different pathways and identify interventions that remain valid across scenarios.' BCG defended its R6-million Energy Transition Roadmap for the Energy Council, a coalition of more than 40 businesses, including polluters, stating that members contributed individually and were committed to decarbonisation. On the influence of fossil fuel clients on public-facing outputs like the #energisemzansi campaign and the EDMSA energy modelling tool, BCG asserted: 'BCG is committed to the highest standards of ethics and business conduct, and we apply rigorous confidentiality measures and conflict-of-interest protocols in our engagements.' Responding to allegations of a lack of transparency and unincorporated feedback in its NBI/Business Unity South Africa collaboration, BCG maintained that the project involved an 'open and transparent consultation process' with more than 200 participants from over 30 companies, government bodies, and civil society organisations. 'Fact-based synthesis' It stated that the advisory committee and steering committee were both regularly engaged by BCG for review and comment, and that the final report represents a 'fact-based synthesis of all contributions and does not reflect the views or interests of any single contributor'. Concerning the hiring of former Bain employees implicated in the SARS State Capture scandal, BCG stated: 'BCG follows a rigorous vetting process when hiring new colleagues. Based on that vetting process, there were no factors that would have precluded their onboarding.' It added that BCG adhered to procurement policies and regulatory requirements, both in the private and public sectors. Finally, regarding its client relationship with Standard Bank, which finances controversial projects like Eacop, BCG stated: 'BCG maintains strict confidentiality agreements with all our clients both in the private and public sectors. As such, we are unable to provide details on individual clients or specific project work.' The same response was given for queries about the quantifiable progress of the Mpumalanga SME investment project. BCG concluded its overall comments by stating: 'We only undertake work where we are uniquely qualified to contribute to addressing technical complexity, ensuring that BCG's efforts are directed toward accelerating a just and sustainable transition. We are proud of our contribution to South Africa's JET.' The PCC under scrutiny The Presidential Climate Commission (PCC), established in 2020 to advise President Cyril Ramaphosa on South Africa's climate response, is a crucial institution in the JET. Currently, it legally exists under the National Economic Development and Labour Council (Nedlac) until it can be established as a separate public entity under the Climate Change Act. Mathe said the establishment of the PCC in this manner had led to much confusion around its reporting and oversight lines, which determine its accountability and help to strengthen its independence. A welcome finding from the Open Secrets report is that the PCC has largely avoided direct reliance on the Big Three management consultancies. Instead, it frequently turns to academic institutions and local think tanks for expertise. But the PCC is not without its own challenges. The report reveals concerns from former insiders and civil society about its internal governance. Allegations include the centralisation of power within a small network of individuals, creating a 'shadow ministry' that sidelines the diverse body of commissioners. The PCC has called for the past and present insiders referred to in this report to be 'unveiled' as they believe this was not a protected disclosure matter. Questions were also raised about the transparency of its procurement processes, particularly its reliance on fiscal hosting by entities like the African Climate Foundation (ACF) for donor funds, which operates outside the requirements of South Africa's Public Finance Management Act (PFMA). While the African Climate Foundation insists on its non-interference, critics worry about the potential for conflicts of interest when a re-granting organisation is so intimately involved in policy shaping. The report highlights the case of Krutham (formerly Intellidex), a financial consulting firm contracted by the PCC to advise on the Just Transition Financing Mechanism. While Krutham maintains its expertise and competitive appointment, climate experts express surprise at its rapid prominence in the climate finance space, suggesting that the PCC might be outsourcing work to demonstrate 'independence' rather than building internal capacity or fully leveraging its own commissioners' expertise. PCC's response The Presidential Climate Commission provided Daily Maverick with a comprehensive response to the allegations and criticisms raised. Regarding claims of a shadow ministry and centralised decision making, the PCC stated that members of the secretariat were appointed following rigorous and competitive recruitment processes. Blessing Manale, PCC communications and outreach head, said: 'The assertion that commissioners are being sidelined or ostracised is incorrect and is not borne out by the commissioners' own assessments of the functioning of the commission. It is also important to note that all commission meetings are publicly broadcast and that all decisions of the commission are taken at these meetings and recorded accordingly.' On the accountability of commissioners and addressing civil society criticisms, Manale said the commission made recommendations based on consensus and not on a stronger hand or influence by any social partner or institution represented by a commissioner. 'Commissioners are held accountable by the collective; they should be able to report to their constituencies on their work, and in most instances the secretariat has been invited to attend various events, conferences and dialogues by these organisations so that we could expand on the substance of our work,' said Manale. He added that all commissioners who had resigned or been replaced had been at the behest of their constituencies, and that the president had accepted replacement nominations from such organisations. During all consultations, Manale said that commissioners who lead the substantive discussion were interrogated and provided feedback, input, and criticism by stakeholders. 'It needs to be emphasised that civil society has nine representatives… This makes it the largest block in the commission. In addition, the PCC has established a Youth Caucus and a gender Advisory Forum, and other structures… as some mechanisms ensure elaborate discussion and engagement on pertinent issues in the PCC work programme,' said Manale. Addressing the criticism that commissioners sometimes prioritised organisational interests, the PCC responded: 'The commissioners can only be held responsible by their nominating organisations for the work they do in the commission and their commitment to the consensus mechanism of the PCC.' Manale added that in any matter of discussion, all commissioners and the secretariat made a declaration where there would be a conflict of interest. On the selection of Krutham (formerly Intellidex) for the Just Transition Financing Mechanism work, the PCC affirmed that Krutham had been appointed on a commercial basis to support its work on advancing South Africa's JET through two research and advisory projects delivered between 2022 and 2023. They emphasised: 'All PCC consulting work is procured through a competitive, open, and transparent procurement process, in compliance with the Public Finance Management Act, for all Nedlac procured work and in compliance with the African Climate Foundations' Finance and Procurement Policy.' Manale said: 'Krutham's work is thoroughly processed by the secretariat, carefully considered by the commission, and cross-referenced with a diversity of stakeholder views.' Addressing its funding model and relationship with the African Climate Foundation (ACF), the PCC stated that it had a Donor Policy and Standard Operating Procedure for screening and receiving donor resources, with additional checks by its Finance and Governance Committee. Independence The African Climate Foundation is a fiscal host of the PCC, through an agreement signed by Nedlac on behalf of the PCC and ACF to fiscally host the PCC donors. Manale said this relationship did not affect the independence of the PCC. He added that the PCC had always been transparent about its sources of funding, which were overseen by its commissioners. Manale further said that the African Climate Foundation did not sit on the PCC, did not vote on its decisions, was not a commissioner, and did not exert influence over their positions. 'The African Climate Foundation is therefore seen as an enabler, not a director. Much like African Climate Foundation's grant-making to other grantees, including Open Secrets, the African Climate Foundation does not influence or direct our decisions,' said Manale. The PCC concluded by stating that it was satisfied that it had fulfilled its mandate and that its advice was based on thorough stakeholder engagement informed by the best available research, and that no undue influence was exerted on its decision-making processes by private consultants or donors. It also noted a factual inaccuracy in the Open Secrets report regarding Manale's former role, stating that he was not the former director-general of the Ministry of Transport, and would make submissions for correction. Consulting giant denies role in green energy projects According to the JET Grants Register and the report, PricewaterhouseCoopers (PwC) is listed as an implementing partner for four UK-funded projects under the Just Energy Transition Partnership, with a combined value exceeding R130-million. These projects are primarily focused on Mpumalanga's transition, involving initiatives like a R20-million 'Climate Finance Accelerator' to boost low-carbon businesses, a R2-million project to vet municipal projects for further funding, and two larger collaborations with Adam Smith International (ASI) and Pegasys Consortium valued at R22-million and R86-million respectively. These latter projects aim to support local economic diversification and develop project pipelines in the energy and water sectors. In response, PwC South Africa told Daily Maverick it was not involved in these projects and that each firm in the PwC global network was a separate and independently controlled entity. It suggested PwC UK may be involved, but could not confirm the register's accuracy and explicitly denied any involvement in the work with ASI and Pegasys. Separately, PwC addressed its past audit failures at SAA, as highlighted by the State Capture commission, and said it was disappointed that its work fell below professional standards. The firm acknowledged that the responsible audit partner, who was no longer with PwC, accepted a sanction from the Independent Regulatory Board for Auditors for the oversight. Transparency needed in South Africa's energy sector The Open Secrets report concludes with recommendations to steer South Africa's Just Energy Transition back towards its core principles of justice, transparency, and public interest. Mathe told Daily Maverick that the state must take immediate action to improve transparency in South Africa's energy sector, especially concerning JET funding and contracts. Additionally, she said JET funding partnership agreements should be publicly accessible and require quarterly reporting. 'In particular, the state must maintain a publicly accessible database of the full expenditure of Just Energy Transition Partnership monies (including those which have been paid into the fiscus and those which have been routed outside of the state), to enable proper monitoring and evaluation of the partnership,' said Mathe. They also call for more secure and appropriate financing. While more JET Investment Plan funding was needed, Open Secrets said a larger portion must be granted, with a significant shift towards local entities like communities, NGOs, civil society and academic institutions. Another recommendation was to strengthen financial stewardship and procurement oversight. The report states that all JETP monies, regardless of origin, should ideally be routed through the South African state and be subject to the Public Finance Management Act. Where not possible, robust alternative oversight mechanisms must ensure alignment with the just transition definition in the Climate Change Act. The authors also state that the management consulting sector urgently needs effective regulation to hold firms accountable for misconduct and conflicts of interest. DM
