DoJ ordered McKinsey and Company Africa (Pty) Ltd (McKinsey Africa) to pay over $122 million in connection with bribery of South African government officials.
Also unsealed the guilty plea of Vikas Sagar, former senior partner re bribery scheme.
Sagar previously pleaded guilty to one count of conspiracy to violate the FCPA
Allegations
McKinsey involved in scheme to bribe government officials between 2012 and 2016.
The company agreed to pay bribes to then-officials at Transnet SOC Ltd. (Transnet) and Eskom Holdings SOC Ltd. (Eskom) and obtained sensitive private data from them.
McKinsey submitted proposals for consulting engagements, knowing that partnering firms would pay a portion of their fees as bribes to officials at Transnet and Eskom.
Due to bribery scheme, McKinsey/McKinsey Africa earned approximately $85mn profits
Filed a deferred prosecution agreement (DPA) in re criminal information charging the company with one count of conspiracy to violate Foreign corrupt practices act (FCPA).
Also unsealed the guilty plea of Vikas Sagar, former senior partner re bribery scheme.
Enforcement
Pursuant to the DPA, McKinsey Africa has agreed to pay a penalty of $122,850,000.
DoJ agreed to credit some penalties against amounts McKinsey pays to authorities in South Africa in related proceedings, and cooperate in other criminal investigations.
Also agreed to enhance their compliance program and to report to the government regarding remediation and implementation of their enhanced compliance program.
Sagar pled guilty to participating in conspiracy to violate FCPA, 15 USC 78dd-1, et seq.
Sagar was ordered to forfeit all property derived from traceable proceeds, to the US.
