U.S. Attorney Damian Williams | U.S. Department of Justice
McKinsey & Company Africa has agreed to pay over $120 million following an investigation by the U.S. Department of Justice (DOJ) into a bribery scheme involving South African government officials. The subsidiary, McKinsey and Company Africa (Pty) Ltd, entered a deferred prosecution agreement related to charges of conspiracy to violate the Foreign Corrupt Practices Act. The case is being overseen by U.S. District Judge Colleen McMahon in New York.
Vikas Sagar, a former Senior Partner at McKinsey & Company, pleaded guilty to participating in the conspiracy before U.S. District Judge Laura Taylor Swain in December 2022.
U.S. Attorney Damian Williams stated that "McKinsey Africa participated in a yearslong scheme to bribe government officials in South Africa," which resulted in significant profits for both McKinsey Africa and its parent company. Principal Deputy Assistant Attorney General Nicole M. Argentieri added that this resolution marks the DOJ's third coordinated action with South African authorities under their International Corporate Anti-Bribery initiative.
The investigation revealed that between 2012 and 2016, McKinsey Africa engaged in corrupt practices with Transnet SOC Ltd and Eskom Holdings Limited, both state-owned entities in South Africa. The company obtained confidential information and secured consulting contracts through bribery, earning approximately $85 million.
As part of the deferred prosecution agreement, McKinsey Africa will pay a criminal penalty of $122,850,000, with potential credits for payments made to South African authorities. The company has also committed to enhancing its compliance program and cooperating with ongoing investigations.
The DOJ acknowledged McKinsey's cooperation during the investigation and its efforts towards remedial measures such as anti-corruption training and enhanced due diligence processes.
The case is being investigated by the FBI’s International Corruption Unit and USPIS as part of a broader effort against international corruption.
