DA to lay criminal charges against McKinsey

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Johannesburg, 19 June 2016 - The Guptas have denied reports that they tried to capture rail agency Prasa. The Sunday Times says the claims are made in a letter written in 2012 by former Prasa CEO Lucky Montana.

JOHANNESBURG – The Democratic Alliance will lay a criminal complaint against McKinsey for “fraud, racketeering and collusion” over work the global consultancy did with businessmen friends of President Jacob Zuma, it said on Monday.

Reuters reported last week that McKinsey ignored suspicions raised over several years by local senior staff that companies it worked with were set up to steer state contracts.

READ: Eskom's lies, lies, and more lies

The deal relates to work McKinsey carried out for South African state power company Eskom alongside Trillian, a firm controlled by the Gupta family.

Leaked Gupta emails show that McKinsey instructed Eskom to pay Gupta-owned companies for work that was not done and that Trillian received over R250-million.

READ: Gupta-linked Trillian says it has proof against McKinsey

“The allegations that McKinsey ignored warnings from senior South African staff, as far back as the beginning of 2013, of possible dodgy deals with Trillian, Eskom and other Gupta-linked companies must be fully investigated,” the DA said.

McKinsey is one of several comapnies dragged into the Gupta debacle.

Controversial spin firm Bell Pottinger collapsed when clients deserted the British firm over a racially-charged political campaign run for the Guptas.

READ: Bell Pottinger closes Twitter account as it goes under administration