McKinsey Africa's $122 Million Bribery Settlement: A Deep Dive

McKinsey and Company Africa Ltd will pay over $122 million in a U.S. investigation into a bribery scheme involving South African officials. Charged with violating the Foreign Corrupt Practices Act, McKinsey Africa reached a deferred prosecution agreement. The company profited $85 million from the scheme.

McKinsey and Company Africa Ltd has agreed to pay more than $122 million as part of a resolution to a U.S. investigation into a bribery scheme, according to the Justice Department. The case involves payments made to South African officials for access to private consulting contract information.

In the agreement, McKinsey Africa entered into a three-year deferred prosecution plan, acknowledging the involvement of senior former partner Vikas Sagar, who pleaded guilty to conspiracy charges. McKinsey noted that Sagar was terminated after the company discovered his actions.

The Justice Department highlighted McKinsey Africa's cooperation and anti-corruption training efforts, awarding them credit during the investigation. The company may face additional penalties exceeding $600 million in a separate matter tied to work for opioid manufacturers.

(With inputs from agencies.)