South Africa
MapoList


McKinsey drawn into South Africa’s Gupta business scandal

McKinsey has been drawn into the scandal around South Africa’s powerful Gupta business family after revealing that a partner who allegedly misrepresented the consultancy in a deal with a Gupta-linked investment company would temporarily stand down.

Новости - mainAssistant.com

McKinsey drawn into South Africa’s Gupta business scandal

McKinsey has been drawn into the scandal around South Africa’s powerful Gupta business family after revealing that a partner who allegedly misrepresented the consultancy in a deal with a Gupta-linked investment company would temporarily stand down.

The firm said that Vikas Sagar, a director in its South African office, would take a leave of absence to allow an internal investigation to proceed after he “inaccurately characterised” Mckinsey’s ties with Trillian Capital, a company owned by Salim Essa, a close business associate of the Guptas.

The move demonstrates how international companies have become entangled in the fallout from allegations that the Guptas used their friendship with President Jacob Zuma to obtain lucrative state contracts and sway public appointments — referred to locally as state capture — to bolster their mining-to-media business empire.

The long-running Gupta scandal has cast a shadow over the Zuma presidency and fuelled tensions within the ruling African National Congress, which will choose Mr Zuma’s successor in December.

McKinsey acted after evidence emerged that Mr Sagar wrote to Eskom, South Africa’s state-owned power monopoly, last year stating that the firm had subcontracted certain services to Trillian.

The consultancy said that managers in its South African office had been “surprised to learn” of Mr Sagar’s letter to Eskom, which was revealed in an investigation into Trillian’s alleged involvement in state capture. The consultancy said it had “carried out work with Trillian at Eskom, but did not have a formal subcontract with them” and did not hire Trillian as a local supplier.

Both the Guptas and Mr Zuma have denied the accusations of corruption, which have been fuelled by recent email leaks that exposed an alleged complex web of influence from the Guptas to the heart of the ANC.

Last week Bell Pottinger, the British public relations adviser, apologised for work it had done for a company owned by the Guptas, saying its management had been misled over “inappropriate and offensive” social-media campaigning linked to the contract. Bell Pottinger was widely accused in South Africa of inciting racial tension to divert criticism of the family.

The Trillian investigation was launched last year by Tokyo Sexwale, the company’s outgoing chairperson and a senior member of the ANC. Mr Sexwale called for the probe following allegations that executives at Trillian were aware that Nhlanhla Nene would be sacked as finance minister weeks before it was announced in late 2015.

Mr Sexwale, a former supporter of Mr Zuma, wants the investigation’s report to be included in a judicial inquiry into state capture.

Geoff Budlender, the lawyer who led the Trillian investigation, said in the report last month that the apparent relationship between McKinsey and Trillian “served little purpose other than to provide a substantial financial benefit to Trillian and its shareholders — and presumably to induce Eskom to award the contract to McKinsey”.

The consultancy said it did not accept Mr Budlender’s conclusion and would not enter into supplier contracts “simply to provide financial benefit for a partner firm.” The group has brought in the law firm Norton Rose Fulbright to investigate Mr Budlender’s findings.

McKinsey managers decided not to partner with Trillian as a supplier last year following concerns over the firm’s ownership, people familiar with the matter said.


FT

Google+FT

')"> Facebook Twitter Link

Mpumalanga vendors not happy with live chickens ban

Some vendors of live chickens in Mpumalanga on Tuesday, expressed shock and disappointment at the decision taken by the national department of Agriculture.

Mpumalanga vendors not happy with live chickens ban

Some vendors of live chickens in Mpumalanga on Tuesday, expressed shock and disappointment at the decision taken by the national department of Agriculture.

Re-enlistment of former police officers worries SAPU

The South African Policing Union says it is concerned that allowing former officers to return to their previous roles could dampen the morale of workers.

Re-enlistment of former police officers worries SAPU

The South African Policing Union says it is concerned that allowing former officers to return to their previous roles could dampen the morale of workers.

Firefighters continue to battle Cape fires

Firefighters in the Nelson Mandela Metropolitan Municipality are working around the clock as they attempt to get the raging veld fires in the area under control.

Firefighters continue to battle Cape fires

Firefighters in the Nelson Mandela Metropolitan Municipality are working around the clock as they attempt to get the raging veld fires in the area under control.

Art exhibition highlights Naidoo-Pillay roles against Apartheid

The story of the Naidoo-Pillay family has been brought to life in an exhibition of photographs at the Apartheid museum in Johannesburg.

Art exhibition highlights Naidoo-Pillay roles against Apartheid

The story of the Naidoo-Pillay family has been brought to life in an exhibition of photographs at the Apartheid museum in Johannesburg.

Sanco in Limpopo supports call for Ramaphosa to be president

The South African Civic Organisation in Limpopo has resolved that ANC Deputy President, Cyril Ramaphosa be the next president of the ANC.

Sanco in Limpopo supports call for Ramaphosa to be president

The South African Civic Organisation in Limpopo has resolved that ANC Deputy President, Cyril Ramaphosa be the next president of the ANC.

Recession will put pressure on service delivery: Treasury

National Treasury said on Thursday the confirmation that the country has entered a recession would force a downward adjustment of its growth forecast of 1.3% and put pressure on service delivery.

Recession will put pressure on service delivery: Treasury

National Treasury said on Thursday the confirmation that the country has entered a recession would force a downward adjustment of its growth forecast of 1.3% and put pressure on service delivery.

Trump takes sides in Arab rift

Donald Trump said on Twitter that his recent trip to the Middle East was "already paying off" and cast an anti-Islamist speech he made in Saudi Arabia as the inspiration for a decision by Arab powers.

Trump takes sides in Arab rift

Donald Trump said on Twitter that his recent trip to the Middle East was "already paying off" and cast an anti-Islamist speech he made in Saudi Arabia as the inspiration for a decision by Arab powers.

Proteas focusing on what they can control: De Villiers

The Standard Bank Proteas will remain focused on what is in their control in their ICC Champions Trophy Group B match against Pakistan at Edgbaston in Birmingham on Wednesday.

Proteas focusing on what they can control: De Villiers

The Standard Bank Proteas will remain focused on what is in their control in their ICC Champions Trophy Group B match against Pakistan at Edgbaston in Birmingham on Wednesday.

SA requires urgent transformation programme: Gordhan

South Africa needs to understand state capture and the damage it is doing in the country, according to former finance minister Pravin Gordhan.

SA requires urgent transformation programme: Gordhan

South Africa needs to understand state capture and the damage it is doing in the country, according to former finance minister Pravin Gordhan.

Forensic expert to take stand at Van Breda murder trial

The Cape Town High Court is expected to hear the testimony of a forensic expert in the trial of murder accused, Henri Van Breda on Tuesday.

Forensic expert to take stand at Van Breda murder trial

The Cape Town High Court is expected to hear the testimony of a forensic expert in the trial of murder accused, Henri Van Breda on Tuesday.

Pirates, SuperSport to battle it out for Nedbank Cup glory

Orlando Pirates beat Golden Arrows with a solitary goal in a tough second semi-final match, played at the Princess Magogo Stadium in KwaMashu north of Durban on Sunday.

Pirates, SuperSport to battle it out for Nedbank Cup glory

Orlando Pirates beat Golden Arrows with a solitary goal in a tough second semi-final match, played at the Princess Magogo Stadium in KwaMashu north of Durban on Sunday.

Moseneke lashes out at lack of economic transformation

Former Deputy Chief Justice Dikgang Moseneke on Wednesday lambasted the political leadership for not implementing visionary plans to reconstruct the country.

Moseneke lashes out at lack of economic transformation

Former Deputy Chief Justice Dikgang Moseneke on Wednesday lambasted the political leadership for not implementing visionary plans to reconstruct the country.

Tshwane Metro laments plights of homeless people

The Tshwane Metro Council is planning on building more shelters to accommodate the escalating number of homeless people on their streets as winter creeps in.

Tshwane Metro laments plights of homeless people

The Tshwane Metro Council is planning on building more shelters to accommodate the escalating number of homeless people on their streets as winter creeps in.

Flood, snow warning issued for parts of SA

SA weather service has warned of heavy rain and possible flooding in the southern parts of KwaZulu-Natal, the northern parts of Gauteng, Mpumalanga and the southern parts of Limpopo Saturday.

Flood, snow warning issued for parts of SA

SA weather service has warned of heavy rain and possible flooding in the southern parts of KwaZulu-Natal, the northern parts of Gauteng, Mpumalanga and the southern parts of Limpopo Saturday.

Motsoeledi, Dlodlo to join Ramaphosa in hunger strike

Communications Minister Ayanda Dlodlo and Health Minister Aaron Motsoaledi will join Deputy President Cyril Ramaphosa in a 24-hour pro-Palestinian hunger strike starting Sunday evening.

Motsoeledi, Dlodlo to join Ramaphosa in hunger strike

Communications Minister Ayanda Dlodlo and Health Minister Aaron Motsoaledi will join Deputy President Cyril Ramaphosa in a 24-hour pro-Palestinian hunger strike starting Sunday evening.

Ramaphosa denies involvement in Marikana killings

Cyril Ramaphosa has apologised for the way in which the Marikana shootings unfolded, but denied any involvement in the killing of 34 Lonmin miners in 2012.

Ramaphosa denies involvement in Marikana killings

Cyril Ramaphosa has apologised for the way in which the Marikana shootings unfolded, but denied any involvement in the killing of 34 Lonmin miners in 2012.

Nehawu expects Ramaphosa to address May Day event in Bloemfontein

The National Education Health and Allied Workers Union in the Free State says it is expecting the Deputy President Cyril Ramaphosa to address workers at the national May Day event in Bloemfontein.

Nehawu expects Ramaphosa to address May Day event in Bloemfontein

The National Education Health and Allied Workers Union in the Free State says it is expecting the Deputy President Cyril Ramaphosa to address workers at the national May Day event in Bloemfontein.

Get more results via ClueGoal