McKinsey and Company Africa Ltd, a subsidiary of McKinsey & Company Inc., has agreed to pay over $122 million to settle a U.S. investigation into bribery allegations involving South African government officials, the U.S. Department of Justice announced on Thursday.
The firm faced charges of conspiring to violate the Foreign Corrupt Practices Act (FCPA) for actions that occurred between 2012 and 2016. McKinsey Africa entered into a three-year deferred prosecution agreement as part of the settlement.
“McKinsey Africa bribed South African officials to secure lucrative consulting contracts that generated tens of millions of dollars in profits,” said Nicole M. Argentieri, head of the Justice Department’s Criminal Division.
The case also implicated Vikas Sagar, a former senior partner at McKinsey, who previously pleaded guilty to conspiracy charges under the FCPA. The settlement underscores the increasing scrutiny of corporate practices in emerging markets and the enforcement of anti-corruption laws globally.