[BREAKING] McKinsey halts work for SOEs

The company says that the decision comes after a four-month investigagtion by its general global council following the scandal surround its dealings with Eskom and Trillian.

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JOHANNESBURG - McKinsey & Company has suspended all work for state-owned companies until further notice.

The consultancy firm, which was linked to Trillian in its dealings with multi-million rand contracts with Eskom, says it’s taking a hard look at its practices in South Africa.

Following an investigation into wrongdoing, McKinsey says it has never served the Gupta family and did not have a contract in place with Gupta linked Trillian, although it did work alongside the company for several months at Eskom.

McKinsey says it wishes it had done things differently but rejects the notion that the firm is involved in any acts of bribery or corruption.

The firm says it was not careful enough about who it associated with and admits it shouldn’t have worked alongside Gupta linked Trillian.

The firm says its contract was approved by Eskom but if a court finds that it was invalid it will pay the power utility back.

It’s suspended work with all state-owned companies and will not begin any new work until it has been thoroughly reviewed and formally approved.

McKinsey has also committed to greater transparency with National Treasury in the future.

To read the full statement from McKinsey, click here.