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Top story: McKinsey Africa Settles $122M South Africa Bribery Case
Source: Reuters
$122M Bribery Settlement: McKinsey Africa will pay $122 million for bribery involving South Africa’s Eskom and Transnet, earning $85 million in profits through insider contracts.
Deferred Prosecution: The firm entered a three-year agreement, citing cooperation and anti-corruption training, with a former partner pleading guilty.
Broader Scrutiny: McKinsey faces additional probes, including a potential $600M settlement for its role in the opioid crisis, amplifying ethical concerns.
Another week, another huge fine for McKinsey.
On Thursday, McKinsey & Company Africa Ltd agreed to pay over $122 million to resolve U.S. charges of bribery involving South Africa’s state-owned entities, Eskom and Transnet. The Justice Department found McKinsey Africa conspired to pay bribes to secure insider information, winning lucrative consulting contracts and earning $85 million in profits.
The firm entered a three-year deferred prosecution agreement, with credit given for its cooperation and implementation of anti-corruption training. The scheme involved former senior partner Vikas Sagar, who has pleaded guilty to conspiracy charges. McKinsey emphasized that Sagar concealed his actions and was fired upon discovery.
This settlement follows growing legal scrutiny of McKinsey’s global practices, as the firm is also negotiating a separate $600 million resolution with U.S. authorities over its role in boosting opioid sales. These cases highlight the increasing pressure on consulting firms to address ethical and governance shortcomings.
Read more here.
Gossip roundup
Source: The Harvard Crimson
4 out of every 10 Harvard undergrads do finance or consulting. Wow.
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