McKinsey & Company Inc.'s African subsidiary has agreed to pay a criminal penalty exceeding $122 million to settle a U.S. Justice Department investigation into a bribery scheme involving South African government officials. The scheme, which spanned from 2012 to 2016, saw McKinsey Africa and its parent company profit $85 million through bribes to officials from South Africa's state-owned entities.
The bribes were aimed at securing contracts with South Africa's state-controlled custodian of ports, rails, and pipelines, as well as its state-controlled energy company. In response to the investigation, McKinsey Africa has entered into a deferred prosecution agreement with the Justice Department, which outlines specific terms the company must adhere to in order to avoid prosecution under the Foreign Corrupt Practices Act.
