McKinsey suspends work for state-owned enterprises

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McKinsey said it was embarrassed by errors it made while working with Eskom on a R1.6-billion contract that is being investigated by Parliament.

McKinsey said it was embarrassed by errors it made while working with Eskom on a R1.6-billion contract that is being investigated by Parliament.

JOHANNESBURG - Embattled consultancy firm McKinsey has suspended all work for state-owned enterprises, until further notice.

The move follows an investigation into allegations of wrongdoing involving its relationship with Eskom.

The firm says it’s violated its own professional standards, making several errors of judgment.

But it’s rejected claims it was involved in bribery or corruption.

READ: McKinsey to repay fees if court finds Eskom contract illegal

McKinsey’s also denied serving the Gupta family, or any companies linked to the family.

But it concedes it should not have started working alongside Trillian at Eskom until it had completed its due diligence.

McKinsey later ended discussions with Trillian, saying it refused to provide ownership details.

The firm says it’s embarrassed by its failings, and has apologised to South Africans.