Flash Briefing: Transnet says McKinsey has miscalculated, Discovery Bank gets a new CEO

By Melani Nathan 

  • At the Zondo Commission this week, McKinsey was presented with evidence that its consulting work alongside Regiments Capital was tainted by the corruption of State Capture at Transnet and SAA. Regiments Capital is a Gupta-linked firm. McKinsey has agreed to pay back R650m to Transnet and SAA. In 2017 McKinsey conceded that work done at the state owned power utility Eskom was also linked to state capture. It agreed to return R1bn in fees received from Eskom. At the time, Global CEO Kevin Sneader denied that the same kind of activities were taking place at Transnet and SAA, where it was working with Regiments Capital. In 2012, the company had formed a partnership with Regiments Capital to tender for a contract at Transnet. McKinsey maintains it had no idea that Regiments was paying part of its earnings on to the Guptas. Transnet has responded to McKinsey’s announcement, saying that McKinsey’s figure amounts to about half of what it is actually owed.
  • Discovery announced the appointment of Hylton Kallner as the new CEO of Discovery Bank and Discovery Bank Holdings effective from 1 January 2021. Kallner replaces Barry Hore. In a statement Discovery said the Bank has completed its build and migration phase, during which several important milestones were achieved. The Bank has seen its first full year of operations, with growth to over 500,000 accounts and R5bn in retail deposits. Kallner will step down from various subsidiary boards but will retain his role as chair of the Discovery South Africa Exco as the key co-ordination structure across the SA operations said Adrian Gore, Discovery Group Chief Executive.

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