STEPHEN YORK: Bain SA won’t have a repeat of the past

Every South African is rightly angry about the corruption and lasting devastation that a decade of state capture has wrought on the country. The new leadership at Bain & Company SA, which I head up, are too.

When Bain SA’s former managing partner Vittorio Massone testified at the Nugent commission in August 2018 we started to understand — for the first time — the extent to which Bain had let down SA and its people in its work for the SA Revenue Service (Sars).

We deeply regret the mistakes made in the procurement and execution of Bain SA’s work with Sars between 2015 and 2017. Sars was — and remains — a critical institution and a source of pride. Like many of you we are embarrassed that this could have occurred in the first place, and are angry that our work was used by others to damage a critical institution and SA.

We repaid to Sars all fees plus interest before the completion of the Nugent commission in 2018. We also acknowledged and apologised publicly for the specific mistakes that were made at the time, and we continue to do so. These mistakes are detailed on our corporate website.

Contrary to inflammatory claims made by armchair commentators, the investigation conducted by law firm Baker McKenzie in 2018 found “no evidence of any intention by anyone at Bain to destroy or undermine Sars”.

In SA, neither commission of inquiry has recommended that Bain be prosecuted. We have no record, nor did any evidence emerge during the Nugent and Zondo commissions, that Bain knowingly conspired in state capture. There is no evidence that Bain orchestrated the destabilisation of Sars to further any corrupt and destructive agenda. Statements that Bain took or paid bribes and violated any corrupt practices laws are untrue.

The speculation and false narrative about Bain that has emerged and continues to be recklessly spread by individuals with no first-hand knowledge of Bain’s work at Sars goes far beyond our actual failures. This fiction and innuendo have long since overtaken the facts.

No connection

It is true that Bain SA’s former managing partner attended meetings at which former president Jacob Zuma was present, something that would be impossible under Bain’s current governance protocols. As far as we know, most involved other senior and well-respected SA business leaders. These meetings were aimed at supporting the government to formulate and execute policy over a broad range of areas, but there is no evidence that they were part of a grand scheme of state capture. No new business came from these meetings.

Bain SA also has had no connection or involvement with the Guptas, or any other entities identified in the media as related to the Gupta family, at Sars or elsewhere. The extent of Bain’s involvement and fees earned in the public sector has similarly been overstated. We have never worked for Eskom, Transnet or Denel, as has been publicly claimed. We did not produce an ANC manifesto, pro bono or otherwise. We have never tried to buy anyone’s silence.

We have commenced judicial review proceedings through the UK courts against the decision to exclude Bain & Co from UK government work, which we believe was based on a flawed process.

We unequivocally accept the rightful public anger about state capture that took root in SA, and about Bain SA’s involvement with Sars. This was avoidable — there were enough red flags that went unheeded.

Since the conclusion of the Nugent commission we have owned our failures and focused on remedying our mistakes. We moved quickly to install new local, regional and global leadership. We overhauled our governance processes to ensure these mistakes could not happen again — in SA or elsewhere.

Leadership skills

We established a dedicated SA oversight board, instituted a global risk function with an initial focus on public sector work, and introduced an independent global whistle-blower hotline. We stopped all public sector work in SA and have not done any since.

Bain SA employs more than 80 people. As proud South Africans we want nothing more than the opportunity to help ensure our country can grow, innovate and excel. As a start we have set aside funds to invest in inclusively growing SA, offering leadership skills and training with and through respected independent entities in SA, and transparently supporting initiatives that strengthen public institutions and promote social cohesion.

The new Bain SA leadership is determined to make ensure the events of the past cannot be repeated. In line with the public commitment we made in our recent appeal for constructive dialogue, we have written to key people across government, including Sars and the National Treasury, the business community and civil society, to engage openly and honestly on a potential path forward, and how Bain can, ultimately, be a force for good to help build a better SA.

• York is managing partner of Bain & Company (SA). Bain SA’s comprehensive statements and supporting affidavits and documents are available at bain.com/sars.