The South African Presidency has urged the G20 Business Forum to sever all ties with McKinsey & Company and Bain & Company, citing their involvement in the state capture scandal that inflicted severe damage on the country’s public institutions and finances. This appeal underscores South Africa’s commitment to addressing the repercussions of corruption that cost the nation billions in public funds.
Both consulting firms have been heavily scrutinized for their complicity in state capture during the administration of former President Jacob Zuma. Bain & Company played a controversial role in restructuring the South African Revenue Service (SARS) under Tom Moyane, whose tenure was marked by institutional dysfunction. The Zondo Commission, chaired by Chief Justice Raymond Zondo, condemned Bain’s actions as “unlawful and harmful,” accusing the firm of facilitating the weakening of SARS.
McKinsey faced similar allegations due to its lucrative yet dubious contracts with state-owned enterprises like Eskom and Transnet, often in collaboration with the Gupta family—a central figure in the state capture saga. While McKinsey has repaid nearly R1 billion to the South African government in reparations, the firm’s legacy remains tainted, with ongoing legal and reputational challenges.
Presidential spokesperson Vincent Magwenya emphasized the gravity of allowing such companies to participate in international platforms like the G20 Business Forum. “Enabling companies implicated in corruption to maintain their presence at prestigious forums undermines global efforts to promote accountability and transparency,” Magwenya stated.
The Presidency’s stance aligns with President Cyril Ramaphosa’s broader anti-corruption agenda, which aims to restore institutional integrity and rebuild public trust. Ramaphosa has consistently called for decisive action against entities complicit in state capture, domestically and abroad.
While civil society groups and activists have welcomed this move, some critics argue that more stringent legal actions are required to ensure lasting accountability. The Presidency’s call has further fueled debate on the ethical responsibilities of multinational corporations in fostering transparent governance.
This appeal also highlights South Africa’s ongoing struggle to rebuild key institutions weakened by years of systemic corruption. By urging the G20 Business Forum to disassociate from McKinsey and Bain, South Africa is sending a strong message about the need for ethical governance and corporate accountability on a global scale.