‘Sorry’ McKinsey coughs up

NOT ENOUGH: CRITICS OF CONSULTING FIRM URGE AUTHORITIES NOT TO LET IT OFF THE HOOK

Company appoints new head of Africa division and replaces staff in SA office.

McKinsey has made sweeping changes to its South Africa business to try to rebuild its reputation following an ill-fated deal with friends of scandal-plagued former president Jacob Zuma.

Kevin Sneader, who started as McKinsey’s global managing partner last week, announced yesterday that the firm has appointed a new head of its Africa division and replaced its South African finance, legal and compliance staff.

“On behalf of McKinsey & Company, I sincerely apologise to the people of South Africa,” Sneader told an often hostile audience of consultants, academics, NGOs and journalists at a Johannesburg business school.

“I hope you will allow us to earn back the trust we have lost,” added Sneader, who was previously the head of McKinsey’s Asian offices.

Privately owned McKinsey has lost clients in South Africa since it emerged last year it had partnered with local consultancy Trillian in order to win a R1.6 billion contract with state power utility Eskom in 2016.

Trillian was then controlled by the Gupta family, who are under investigation over accusations that they used their friendship with Zuma to fraudulently win government contracts worth hundreds of millions of rands. Zuma and the Guptas deny wrongdoing. Police have a warrant of arrest out for at least one Gupta brother.

The National Prosecuting Authority is considering pursuing a criminal case over the contract between McKinsey, Trillian and Eskom which it says was unlawful and a “sham”.

McKinsey, the world’s biggest consultancy, denies doing anything illegal.

It is among several multinational firms to have become ensnared in a far-reaching scandal that has outraged South Africans, who have watched state resources being looted while millions remain mired in poverty.

“To be brutally honest – we