State capture-implicated firms McKinsey, Bain spark G20 row

The Presidency’s unhappiness with the appointment of state capture-implicated foreign firms, now playing a strategic role in the G20 and in the Energy Council of South Africa, has forced Business Unity South Africa (Busa) to seek a meeting with the Union Buildings.

The Presidency has raised concerns about the appointment of McKinsey as supporting partner to the B20 – an engagement group coordinating the participation of business in next year’s G20

It has also expressed unease at the appointment of Bain to the project management office of the Energy Council of South Africa.

McKinsey and Bain were fingered by former chief justice Raymond Zondo for their role in state capture during the Jacob Zuma presidency – marked by graft and siphoning of billions from stateowned enterprises.

McKinsey-Bain controversy

Asked for comment on the McKinsey-Bain controversy, Busa CEO Cas Coovadia said: “After due consideration, we have decided not to engage on this publicly, until we have an opportunity to talk to the Presidency.

Busa has played a key coordinating role in G20 preparations and is said to have given a nod to the McKinsey appointment.

The Presidency said it had “noted with concern the recent appointments of McKinsey as a supporting partner to the B20”.

It also expressed concern at the appointment of Bain to the project management office of the Energy Council of South Africa.

“While the Presidency or government has no control over the B20 processes, it does not endorse the appointment of McKinsey.

“Similarly, the Presidency does not condone the inclusion of Bain in supporting the activities of Necom [National Energy Crisis Committee of Ministers].

“The appointments do not contribute to the engendering of public trust and promotion of good governance, given the well documented role of the two firms in state capture and corruption,” said the Presidency.

It called on business to “reconsider its position and to appoint more suitable partners”.