South Africa’s Black Business Council Urges McKinsey Ban And Blacklisting

South Africa’s Black Business Council has called for McKinsey & Company to be banned and blacklisted following the consultancy firm’s $122 million settlement with South African and US authorities. 

McKinsey’s payment addresses allegations of bribery and corruption involving former South African president Jacob Zuma and has sparked debate over accountability and fairness.

McKinsey Bribery Settlement Sparks Outrage

McKinsey’s settlement stems from McKinsey’s involvement in corrupt dealings with South African state-owned enterprises Eskom and Transnet between 2012 and 2016. 

While the firm has fired implicated employees and returned over R4.1 billion ($227.4 million) in fees, critics argue the settlement does not go far enough.

“Accepting money without further action sends the wrong message, especially in a country like South Africa with its history of inequality,” Black Business Council CEO Kganki Matabane said on the Money Web podcast.

Matabane emphasized the need for consistent treatment of companies found guilty of corruption. 

He highlighted disparities, pointing out that Black-owned firms implicated in similar scandals faced closure while global consultancies like McKinsey continued operating.

Black Business Council Calls For Tougher Measures

The Black Business Council is an independent membership-based organization representing Black professional, business associations, and chambers.

In a media statement, the organization called for McKinsey to be blacklisted for at least ten years from both public and private sector work in South Africa. This, it argues, would serve as a deterrent against future misconduct. 

Matabane also criticized Business Unity South Africa (BUSA) for collaborating with McKinsey, even on a pro bono basis, stating it undermines efforts to hold the company accountable.

Calls for stricter measures resonate beyond South Africa.  Critics like UK politician Peter Hain have urged international governments to bar firms implicated in similar scandals from public contracts until they demonstrate substantial reform.

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