McKinsey & Co. has agreed to pay more than $122 million (R2.2 billion) to resolve criminal allegations tied to a corruption scandal involving former leaders of South Africa\u2019s ports and rail operator Transnet.<\/p>\n\n\n\n
The US Justice Department agreed not to proceed with a case against the consulting firm if it engages in no further misconduct for 3 1\/2 years, federal prosecutors and defence lawyers said at a Thursday court hearing in New York. <\/p>\n\n\n\n
The agreement resolves both a US investigation and\u00a0charges\u00a0brought against McKinsey by South Africa\u2019s National Prosecuting Authority.<\/p>\n\n\n\n
The firm pleaded not guilty to a single count of conspiracy on Thursday before US District Judge Colleen McMahon. <\/p>\n\n\n\n
McKinsey said in a statement that it will continue to cooperate with US and South African authorities and \u201cwelcomes the resolution of these matters and the closure of this regretful situation.\u201d<\/p>\n\n\n\n
The consulting firm was retained to advise state-owned Transnet on the purchase of 1,064 locomotives, which cost R54 billion ($3 billion). <\/p>\n\n\n\n
In a statement, the Justice Department said McKinsey made $85 million as part of the alleged bribery scheme.<\/p>\n\n\n\n
The firm repaid $63 million in fees to Transnet in 2021. The Justice Department said a former senior McKinsey partner, Vikas Sagar, previously pleaded guilty to conspiring to violate US foreign bribery laws.<\/p>\n\n\n\n
Contact information for Sagar or his lawyers couldn\u2019t immediately be located.<\/p>\n\n\n\n
The agreement also resolves US and South African investigations into McKinsey\u2019s work for another South African state-owned enterprise, power utility Eskom.<\/p>\n\n\n\n