McKinsey & Company Africa has agreed to pay over $122 million to settle a U.S. Justice Department investigation into a bribery scheme involving South African government officials between 2012 and 2016. The resolution includes a deferred prosecution agreement (DPA) for McKinsey Africa, charging it with conspiracy to violate the Foreign Corrupt Practices Act (FCPA).
The case involved McKinsey Africa paying bribes through a senior partner to secure confidential information from Transnet SOC Ltd. and Eskom Holdings SOC Ltd., two state-owned enterprises in South Africa. This allowed McKinsey Africa to gain consulting contracts, resulting in approximately $85 million in profits.
Principal Deputy Assistant Attorney General Nicole M. Argentieri commented on the case: "McKinsey Africa bribed South African officials in order to obtain lucrative consulting business that generated tens of millions of dollars in profits." She emphasized the importance of international partnerships in combating corruption.
U.S. Attorney Damian Williams stated, "McKinsey Africa participated in a yearslong scheme to bribe government officials in South Africa," highlighting the commitment to fight against American companies engaging in corrupt practices abroad.
Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division remarked, "This settlement underscores our unwavering commitment to holding companies accountable that willfully engage in corrupt activities around the world."
Inspector Eric Shen of the U.S. Postal Inspection Service noted, "McKinsey Africa will pay over $122 million, a clear indication that corruption comes at a significant cost."
Under the DPA terms, McKinsey Africa will cooperate with ongoing investigations and enhance its compliance program. The Justice Department credited McKinsey's cooperation during the investigation and its remedial measures, including anti-corruption training and repaying revenues from tainted contracts.
The investigation was conducted by the FBI’s Los Angeles International Corruption squad and USPIS, with assistance from authorities in South Africa.
