Thu Dec 05 21:13:43 UTC 2024: ## McKinsey’s African Subsidiary to Pay $122 Million in Bribery Settlement
**Johannesburg, South Africa –** McKinsey & Company’s African subsidiary will pay a $122 million criminal penalty to resolve a US Justice Department investigation into a bribery scheme targeting South African government officials. The scheme, which ran from 2012 to 2016, involved bribing officials at the state-owned custodians of ports, rails, and pipelines, as well as the state-controlled energy company, to secure lucrative contracts. The illegal activities generated $85 million in profits for McKinsey Africa and its parent company.
The Justice Department has reached a deferred prosecution agreement with McKinsey Africa, allowing the company to avoid prosecution under the Foreign Corrupt Practices Act provided it meets certain conditions. McKinsey acknowledged the wrongdoing, stating it has cooperated fully with authorities and implemented significant improvements to its risk, legal, and compliance controls. A former senior manager involved in the scheme, who pleaded guilty to related charges, was dismissed by McKinsey over seven years ago. The company emphasized that it has undergone significant changes since the events occurred.
First Piper 