McKinsey Africa Settles Bribery Case with $122 Million Payment

The consulting firm's South African subsidiary admitted to a yearslong scheme involving bribes to secure lucrative state contracts.

McKinsey Africa agreed to pay $122.8 million as part of a deferred prosecution agreement with U.S. and South African authorities over bribery allegations.
The scheme involved paying bribes to officials at South Africa's state-owned companies, Eskom and Transnet, to secure consulting contracts between 2012 and 2016.
A former McKinsey senior partner, Vikas Sagar, pleaded guilty to conspiracy to violate the U.S. Foreign Corrupt Practices Act for his role in the scheme.
McKinsey Africa earned approximately $85 million in profits from the contracts obtained through bribery, according to the U.S. Department of Justice.
The company has implemented compliance reforms and returned fees to the affected South African entities, stating it is now a transformed organization.