McKinsey’s Weiss confirms Regiments contract cancelled due to BEE noncompliance
McKinsey senior partner Alexander Weiss said McKinsey demanded company ownership and a BEE certificate from Regiments but it never came.
JOHANNESBURG - McKinsey senior partner Alexander Weiss on Friday said the consultancy firm decided to part ways with Regiments because it couldn’t provide proof that it was majority black-owned.
Weiss testified at the state capture commission via video link after two other partners testified on Thursday.
He said McKinsey demanded company ownership and a BEE certificate from Regiments but it never came.
“This then led to a series of letters where we wanted to be crystal clear that this can’t be our partner. Although, indeed we had worked alongside them in the anticipation that they adjust the process and work out something.”
Weiss also admitted that it was a mistake for the consultancy to continue working with Trillian after terminating its supplier development partnership.
He and other McKinsey partners maintained they didn’t know that Regiments and subsequently Trillian were corrupt and when red flags appeared, they made it clear to Eskom that they wouldn’t work with Trillian anymore.
“We indeed continued our work even though the contract was cancelled until August 2016 and then over time they disappeared. We didn’t actively engage them but in hindsight I agree it was a mistake.”
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