McKinsey & Company’s South African subsidiary has agreed to pay over $122 million to settle a U.S. Department of Justice (DOJ) investigation into bribery allegations involving South African government officials.
The settlement centers on accusations that McKinsey Africa engaged in corrupt practices between 2012 and 2016 to secure lucrative consulting contracts with state-owned enterprises, Transnet and Eskom. The firm admitted to conspiring to violate the Foreign Corrupt Practices Act (FCPA) as part of a three-year deferred prosecution agreement (DPA) with U.S. authorities.
Court documents reveal that a senior partner at McKinsey Africa obtained confidential information to gain an unfair bidding advantage for multimillion-dollar contracts. The firm collaborated with local consultants who directed portions of their fees as bribes to officials at Transnet and Eskom, yielding approximately $85 million in profits for McKinsey Africa and its parent company.
Vikas Sagar, a former senior partner at McKinsey Africa, had earlier pleaded guilty to FCPA violations. Under the settlement, McKinsey Africa will pay a $122.85 million criminal penalty, with half potentially credited against fines levied by South African regulators.
“This resolution demonstrates that corruption will not be tolerated, regardless of industry or prominence,” said U.S. Attorney Damian Williams.
The resolution was announced alongside a coordinated agreement with South African authorities, signaling a concerted effort to combat corporate corruption on a global scale.
