Presidency Expresses Concern Over McKinsey and Bain Appointments Amid State Capture Allegations

The Presidency emphasized that McKinsey and Bain’s involvement in these projects undermines public confidence in the government’s efforts to restore integrity and transparency in governance.

The Presidency of South Africa has voiced strong concerns over the recent appointments of McKinsey & Company as a partner to the B20 and Bain & Company in the Project Management Office of the Energy Council of South Africa, citing their involvement in the State Capture scandal.

In a statement released on Sunday, the Presidency expressed its dissatisfaction with McKinsey's role in the B20, the business engagement group that coordinates private sector participation at the G20 summit, and Bain’s support for the activities of the National Energy Crisis Committee (NECOM). While the government has no control over the processes of the B20, it made clear that it does not endorse the involvement of these firms in such capacities.

“The Presidency does not condone the inclusion of Bain in supporting the activities of NECOM. 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,” the statement read.

This criticism follows the National Prosecuting Authority's (NPA) announcement earlier this month that McKinsey South Africa had reached a R1.1 billion resolution with the state. The settlement was part of McKinsey’s acknowledgement of its role in State Capture, specifically in relation to the corrupt activities of former partner Vikas Sagar. These actions led to McKinsey securing contracts with Transnet and Eskom worth nearly R2 billion during the period of state capture.

The Presidency emphasized that McKinsey and Bain’s involvement in these projects undermines public confidence in the government’s efforts to restore integrity and transparency in governance. It called on businesses to reconsider their partnerships and appoint more suitable firms that align with South Africa's commitment to good governance.

“The Presidency calls on business to reconsider its position and to appoint more suitable partners for these important endeavours,” the statement concluded.

This latest development highlights ongoing public scrutiny of the firms linked to corruption during the state capture period, which continues to be a contentious issue in South African politics and governance. The NPA has made significant strides in addressing state capture, and the South African government is working towards rebuilding trust in its institutions and partnerships.