17 June 2024 | 11:38 AM

Update: McKinsey to return R870m state-capture money to Transnet

Key Takeaways

McKinsey, long considered the world’s most prestigious consulting firm, will repay R870-million to Transnet after the Zondo commission presented the firm with evidence that its contracts were tainted by state capture.

Watch: How McKinsey was made to pay back the money

The settlement is more than the R650-million in fees that McKinsey previously committed to return to both Transnet and South African Airways. The “full and final settlement”, announced in a joint statement today, includes “fees paid … plus interest”.

The fees all stem from McKinsey’s work with Regiments Capital. AmaBhungane repeatedly provided evidence in 2016, 2017 and 2018 that these contracts were tainted by state capture.

This week, our allegations were confirmed when Paul Holden from Shadow World Investigations gave expert testimony at Zondo about the money laundering networks used by the Guptas to move billions out of the country. The letterbox companies amaBhungane exposed formed the backbone of this laundry.

McKinsey maintains that it was unaware that Regiments was paying over roughly half of the fees it earned to the Guptas and their business partner Salim Essa.

Susan Comrie and Scorpio’s Pauli van Wyk, who investigated McKinsey, published a series of exposes, read them here:

The McKinsey dossier part 1 – how McKinsey and Trillian ripped R1.6bn from Eskom
The McKinsey dossier part 2 – contract to pay McKinsey and Trillian R1.6-bn ‘invalid’
The McKinsey dossier part 3 – Eskom tells McKinsey and Trillian to #PayBackTheMoney
The McKinsey dossier part 4 – bending over backwards for Trillian
The McKinsey dossier, part 5 – how Transnet cash stuffed Gupta letterboxes
The McKinsey dossier part 6 – five strikes and you’re IN

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Susan Comrie and Ankit Paliwal, Input Editor at IANS in India

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