26 May 2021
- McKinsey & Company is pleased to announce it reached a settlement with Transnet related to the fees it earned at Transnet while working on projects with Regiments Capital.
- This settlement is consistent with the commitment made by McKinsey’s Managing Partner, Kevin Sneader, in South Africa in July 2018 at the Gordon Institute of Business that McKinsey has undertaken a number of serious reforms and is “committed to learning the lessons that will ensure” such events do not happen again.
- The settlement completes the commitment McKinsey made to return to Transnet at the Judicial Commission of Inquiry (the “Commission) in December 2020.
- McKinsey’s voluntary commitment followed information presented by the Commission that cast doubt on Regiments Capital, McKinsey’s supplier development partner on a number of Transnet projects from 2012 - 2016.
- The Commission made clear that the evidence did not implicate any current employees or partners of McKinsey in any corruption or impropriety in relation to these contracts.
- On 26 May 2021, the Commission’s evidence leader, Advocate Matthew Chaskalson, announced that the settlement of R870 million includes interest and that “McKinsey has shown what a responsible corporate citizen does in these circumstances.”
- The settlement is made without any admission of liability or wrongdoing on the part of McKinsey or its employees.
- McKinsey is pleased that this full and final voluntary settlement of any potential matters related to its work for Transnet has been concluded, and is grateful to Transnet and the Commission for their roles in achieving this important outcome.
Read our past statements on Transnet and SAA, and other actions we have taken.