South Africans urge US law-enforcers to bring Gupta and friends down with McKinsey

EDINBURGH — McKinsey & Company, a global management consultancy, has been exposed as benefiting from corruption. The company has suspended a South African director, but this is seen as a woefully inadequate step. South Africans have reacted with outrage over the role of businesses like McKinsey and KPMG in a massive corruption and state capture campaign that has sucked billions out of state-owned entities at the expense of the economy. Many are hoping US law-enforcement agencies can step in where the South African police and prosecution arms – also corrupted – have failed to act. The McKinsey role in the Gupta scandal was highlighted when wealthy business player Tokyo Sexwale, a former ANC freedom fighter who spent time with Nelson Mandela in prison, instituted an investigation into Trillian Capital Partners. Trillian has allegedly worked hand-in-glove with McKinsey in a ‘sham’ subcontracting relationship to siphon funds out of state utility Eskom. McKinsey was reportedly hired to provide services to the value of R1bn a year to Eskom. McKinsey has failed to co-operate with Sexwale’s lawyer, Advocate Geoff Budlender. – Jackie Cameron

Zapiro cartoon on the ‘Willing Buyer, Willing Seller’ principle. #StateCapture. More of his magic available at

Staff writer

South Africans have called for US law-enforcement agencies to investigate and bring to book individuals at McKinsey & Company who have benefited from a massive corruption scandal that has brought South Africa to its knees.

McKinsey provides consultancy services across the globe. Eskom hired McKinsey to provide consultancy services worth about R1bn a year. McKinsey allegedly subcontracted 30% of its services to Trillian Capital Partners – a Gupta-linked company – in a ‘sham’ supplier arrangement.

Advocate Geoff Budlender, a lawyer hired by Tokyo Sexwale to probe allegations of state capture, has reported that McKinsey has failed to co-operate with the investigation.

Vikas Sagar, McKinsey

McKinsey has called in its own lawyers to look at the allegations and has temporarily suspended its South African partner Vikas Sagar.

The role of McKinsey and another professional services firm, KPMG, in the development of South Africa as a kleptocracy has emerged as journalists sift through the #GuptaLeaks – emails leaked from the heart of the Gupta empire.

It is evident that the Gupta family together with the friends and associates of President Jacob Zuma have thrown a wide net over state-owned entities. Zuma has installed his associates across government departments, including law enforcement agencies.

It is now clear that many in the corporate sector have also played their part in this massive state capture and corruption scandal.

London-headquartered public relations firm Bell Pottinger has already apologised for its role in the scandal, which includes work to develop anti-white propaganda campaigns.

Many South Africans are hoping that US authorities might be able to excise the rot that is eating away at the fabric of this fragile democracy.

‘Jail time for McKinsey leaders – and other corporate bosses’

Commenting on BizNews founder Alec Hogg’s Facebook, Nigel Holloway said: “After a lifetime in corporate and a total disillusionment in so called corporate ‘ethics’, I’m hoping to see prisons bursting at the seams with those corporate leaders who chose money over ethics and honesty. And there are many, many, many thousands of such scumbag”

Anton Nel says this could be the turning point in the Gupta scandal. “I have been waiting patiently for a link like this to appear cause once any person or relationship use any US financial institutions to launder money, the FBI gets involved, and we know SA might not have the clout for a Dubai extradition, the US surely has. I already visualize Zuptas in their own little Alcatraz!”

Explains Ronald Duigan: “For those of us that have worked for US-listed or UK-based companies, annual FCPA training and declarations were de rigour. McKinsey has a problem if this is true. If you know anyone who went through the DOJ wringer, and what they are prepared to do to induce cooperation, it should scare the #$#% out of you. If you even carry second hand knowledge of what went down, never mind actual commission on your part, you will be strong-armed.”

Predicts Morne Mouton: “The FBI getting involve will automatically bring the Gupta’s also under investigation and their money laundering worldwide will be exposed.

Gert Hofhuis is pinning his hopes on US investigators going for the key decision-makers at McKinsey and other corporations. “If you haven’t already done so, read up about the FCPA (Foreign Corrupt Practices Act) ~ many corporates have seen their demise or paid huge penalties as a result, and a number of individuals have been “guests of the state”! Let’s hope a few of these corporate leaders and other bottom feeders involved do a bit of jail time too! However, it seems that they’re quite happy to throw their subordinates under the bus,” he said to BizNews visitors.

Jeff John Edward Fearon comments: “Like the deep-seated corruption in world soccer, it may well take the Americans to expose those who have been helping themselves. Sadly, the South African law enforcement organisations, Hawks & NPA, are nowhere to be seen.”

Grant H. Levy hopes the McKinsey link might be the spark needed to rip apart the Gupta-Zuma empire. “This type of behaviour with Enron brought down the world’s biggest accounting firm at the time – Arthur Andersen. Time for all these crooked bastards to go down, enough is enough,” he said.

Quinton Thrussell cautions: “Zumpty cronies, ANC and the big cheese will cry like stuck pigs that ‘The west’ is trying to de-stabilise South Africa and bring about regime change. Funny thing, its all the crack pot African dictators crying that the west is trying to oust them when actually it is just their corruption coming back to bite them.

‘Fine corrupt creeps, put them out of business’

Says Gregory Ynwa Abrahams: “I would be happy with anyone that can help to get these corrupt creeps in prison, even if it is the FBI as our institutions are useless.”

Michele Savage Harvey agrees. “And… so the bell begins to toll. You will all pay for dirty dealings you money grabbing bottom feeders.You got involved with no thought to all the beautiful people of SA and their future. You are disgusting go home Mr. Sagar and go to jail where you too belong. American citizens you need to ensure he pays for his ” international crime ” and how he has helped hurt SA.

Says Bra Solly Makgalemela: “Some people must keep chuckling and proclaiming their innocence whilst evidence is mounting.”

Commenting under the article, McKinsey turns on its own as explosive SA-Gupta graft scandal erupts, Macafrican reckons “McK is solidly in scope of a Foreign Corrupt Practices Act prosecution, they would burn first-born children at the altar live video streaming to avoid this. Consequences ten times the revenue on the projects”.

Macafrican has a question, too: “ What I really would like to know is how alarm bells did not go off on the 30% commission to Trillian. In the old days consultancy worked ⅓ staff cost, ⅓ overhead, ⅓ profit. Where does 30% commission figure into a deal and exactly how little must McK have actually delivered on Eskom and Transnet to not set off alarms????…billions in fines pending.

sane thought tells Macafrican: “It’s time we see something happen. Lots of gunfire but nobody is being shot!” Dr_Zeek adds sarcastically: “Another win for employment equity.”

Got any information about McKinsey or any other corporates involved in corruption? Comment below this article or send an email to [email protected].

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McKinsey, KPMG, SAP, Bell Pottinger: All caught and captured?

The stories you might have missed about the big companies involved in the state capture scandal:

1. McKinsey turns on its own as explosive SA-Gupta graft scandal erupts

The McKinsey name was highlighted in an investigation into corrupt deals involving the controversial Gupta-linked Trillian Capital Partners. At the weekend, it emerged that McKinsey has suspended one individual. It’s a case of too little, too late for many South Africans who ponder why McKinsey and other companies have taken so long to take a stand against the corrupt and captured within their own ranks.

2. Meet unrepentant Gupta tax dodge ‘lapdog’ Moses Kgosana, KPMG heavyweight

Moses Kgosana was about to take the chair at Alexander Forbes Group Holdings when his name emerged in secret emails leaked from the heart of the Gupta family empire. He has been linked to an accounting manoeuvre that facilitated state payment for an extravagant private event. Read more.

3. Revealed! Bell Pottinger got R5.5m for one weekend to ‘help’ ANC, MK in anti-white campaign

The #GuptaLeaks reveal that the Zupta account has been so lucrative for Bell Pottinger that it sent an invoice for just under £350 000 (about R5,5m), for a four-day trip that included a suggested speech for Collen Maine of the ANC Youth League and a statement for the MK Veterans AssociationRead more.

4. Corrupt SAP exposed. Gupta bribery to suck in US, Germany authorities

One of the world’s biggest business software companies SAP may find itself in hot water with German and US regulators after being embroiled in a massive Gupta kickback deal.Investigative journalism unit, AmaBhungane, released a bombshell report on Tuesday that details how SAP, in August 2015, agreed to pay a 10% “sales commission” to a Gupta-linked company in return for Transnet deals. Read more.

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