McKinsey to pay back R870m in fees to Transnet by Friday

McKinsey to pay back R870m in fees to Transnet by Friday

Global Consulting Company McKinsey & Company has finalised the terms of agreement with Transnet which will see it paying back R870 million in fees it received through irregular contracts linked to state capture.

McKinsey to repay R650m to Transnet and SAA

The commission of inquiry into state capture's advocate Mathew Chaskalson made the announcement on Wednesday following an announcement by McKinsey a day earlier.

 "Yesterday chair, Transnet and McKinsey issued a joint press statement which reads as follows: Transnet SOC Limited and McKinsey announce that they have finalised the settlement of the fees McKinsey committed to return to Transnet at the judicial commission of Inquiry in December 2020. The full and final payment of R870 million includes the fees paid to McKinsey in respect of projects undertaken with Regiments Capital including interest.

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Chaskalson told the commission that while the agreement is to be welcomed, it does not undo all the damage.

"McKinsey has done this chair because that is what a responsible cooperate citizen should do. But the point I’ll emphasise chair is that the amounts that McKinsey has paid are less than 3% of the total amounts that are listed. The companies listed include some Gupta enterprises of which we don't expect voluntary repayment, but they also include a series of South African and multinational companies who are responsible for vast sums of money on contracts that were linked to state capture," he said.

He added that the rest of the companies that have benefited have been given the report by Paul Holden, who is the director of investigations at Shadow World Investigations.

 Holden's report details the total sums of monies that were paid by the state to different companies including Deloitte and KPMG in contracts linked to state capture. 

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