No free pass for McKinsey
A draft forensic report commissioned by the National Treasury casts doubt on McKinsey’s assertion that it did not engage in corruption
A Treasury-commissioned investigation into the Gupta network’s alleged five-year looting spree at Transnet and Eskom sheds light on potentially shady dealings hitherto hidden from public view — including by global consultancy McKinsey. The firm was paid R1bn for six months’ work with questionable benefits for Eskom, and with an invalid contract that allowed Gupta-linked financial advisory firm Trillian to pocket another R600m. McKinsey has since paid back the money — without an estimated R350m in interest — and committed to beefing up its due diligence on local partners. In July, Kevin Sneader, McKinsey’s new global managing partner, flew to SA to deliver a grovelling apology. He said he was deeply sorry his firm had implicated itself in state capture through Trillian, and expressed deep regret that McKinsey had overcharged Eskom at a time when the utility stood on a "financial cliff edge". One thing he was adamant about, though, based on a thorough investigation by two law firms, w...
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