Presidency raises concern over McKinsey, Bain appointments

The Presidency has expressed concern with the recent appointments of McKinsey as a partner to the B20, as well as the appointment of Bain in the Project Management Office of the Energy Council of South Africa.

“The Presidency has noted with concern the recent appointments of McKinsey as a supporting partner to the B20, the business engagement group that meets on the sidelines of the G20 and coordinates the participation of business in the G20, and Bain to the Project Management Office of the Energy Council of South Africa,” it said.

Whilst the Presidency or government has no control over the B20 processes, it does not endorse the appointment of McKinsey in this regard.

“Similarly, the Presidency does not condone the inclusion of Bain in supporting the activities of NECOM [National Energy Crisis Committee]. The appointments do not contribute to the engendering of public trust and promotion of good governance, given the well documented role of the two firms in state capture and corruption,” said the Presidency in a statement on Sunday.

Earlier this month, the National Prosecuting Authority (NPA)  announced that it had secured a resolution with McKinsey South Africa, to pay back some R1.1 billion to state coffers for its role in State Capture.

It said that in terms of the resolution, the multinational company admits, accepts and acknowledges responsibility under South African law for the criminal actions and conduct of Vikas Sagar, who was a former partner of McKinsey, during the relevant period. As a result of Sagar’s corrupt actions, McKinsey was awarded contracts with Transnet and Eskom amounting to nearly R2 billion.

READ | NPA reaches resolution with McKinsey South Africa

“The Presidency calls on business to reconsider its position and to appoint more suitable partners for these important endeavors,” said the Presidency. –SAnews.gov.za