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Consulting firm McKinsey & Co will pay around R650 million to SAA and Transnet for the work it carried out together with Regiments Capital on contracts for state-owned companies.
This is in the wake of the Judicial Investigation Commission’s investigations into the state capture, according to a commission statement.
“The Commission recently began discussions with McKinsey and is now pleased to announce that McKinsey has agreed to reimburse all fees paid to it for work performed on the Transnet and SAA contracts in conjunction with the Regiments. The amount covered by the commitment. McKinsey’s has yet to be fixed with Transnet and SAA, but it is likely to be around R650 million, “the commission said.
The statement added that McKinsey had assisted with the investigations and had been transparent.
This is the latest confirmation of the fees obtained for dubious contracts issued during the era of state capture.
In 2018, KPMG confirmed that SA’s revenue service had paid him 23 million rand for his work on the so-called “rogue unit” report, which has since been discredited.
Meanwhile, Bain admitted that his work at SARS had not produced “sustainable positive results.” He promised to reserve some R164 million that he earned, plus interest, for the benefit of SA.
McKinsey herself received about 1 billion rand in fees from Eskom alone, which she returned after the parties reached an agreement.
Witnesses from McKinsey will testify at the commission on December 10.
