McKinsey's African branch pays millions to settle major bribery case
McKinsey Africa agrees to pay $122M for bribing South African state company officials. The deal resolves a US probe into illegal actions at Eskom and Transnet that brought the firm $85M in profits
McKinsey and Companyʼs African branch has agreed to pay $122‚850‚000 to fix its legal troubles with US authorities (the amount includes South-African penalties too)
The US Justice Department found that McKinsey Africa broke anti-corruption laws when dealing with South-African state-owned companies: they got non-public info about consulting deals in exchange for bribes. The firm signed a three-year deal with prosecutors to avoid immediate charges
Vikas Sagar‚ who was a top-level partner admitted his part in the scheme; McKinsey says they fired him right after finding out about his hidden actions. The consulting giant made around $85M from these deals with Eskom and Transnet - two major state companies that have slowed down South-Africas growth for more than 10 yrs
McKinsey Africa bribed South African officials in order to obtain lucrative consulting business that generated tens of millions of dollars in profits
The company got some credit for helping with the investigation and teaching its workers about anti-corruption rules. Their work with Eskom was meant to help fix the companys problems - but things didnt go as planned
