McKinsey awarded Transnet contract without meeting requirements, inquiry told
MNS Attorneys' Tshiamo Sedumedi told the state capture commission of inquiry that in a bid to be appointed as transaction advisers by Transnet, McKinsey did not submit audited financial statements.
MNS Attorneys' Tshiamo Sedumedi made the submission during his evidence at the public hearings in Parktown.
The firm was hired by the Transnet board to investigate several questionable contracts worth billions of rands.
Sedumedi said in a bid to be appointed as transaction advisers, McKinsey did not submit audited financial statements.
“This purpose as mandated by the RFP (request for proposal) could not be achieved because Transnet could not then satisfy itself of McKinsey’s financial stability as a result of them not providing this statement. McKinsey’s submission or proposal was non-responsive and should not have been entertained,” he said.
Deputy Chief Justice Raymond Zondo asked what should have happened. “They should have been disqualified, is that right?”
“As per the requirements of the RFP,” Sedumedi responded.
The commission’s advocate Mahlape Sello asked him: “And we know they were not disqualified?”
“McKinsey was eventually the successful bidder,” Sedumedi said in response.
Asked whether MNS Attorneys was able to establish through its investigation the basis on which the requirement of the RFP was not upheld, Sedumedi responded: “That is not apparent in the records that we reviewed.”