The Business Bribery

In the corridors of power across Africa, corruption thrives like an unstoppable disease, eating away at economies and stifling business growth. The recent unsealed case of McKinsey & Company Africa scandal—where the global consulting giant was forced to pay over $122 million to resolve a bribery case involving South Africa’s state-owned enterprises—is just one of many high-profile corruption cases that expose the deep rot in Africa’s corporate and government sectors.

But this is just the tip of the iceberg. From Mozambique’s $2 billion ‘Tuna Bond’ scandal to Kenya’s $78 million money laundering scheme and Nigeria’s rampant oil theft, Africa’s business environment continues to be poisoned by corruption. The real question is: What makes this continent so vulnerable to economic crime, and how does Western ideology fuel it?

A Case Study in Corporate Corruption

McKinsey & Company

Between 2012 and 2016, McKinsey Africa, a subsidiary of the global consulting firm McKinsey & Company, engaged in a bribery scheme to secure lucrative contracts with South Africa’s state-owned enterprises—Eskom Holdings SOC Ltd.and Transnet SOC Ltd. These two critical entities control South Africa’s power supply, ports, and railways, making them essential to the country’s economic stability.

Instead of securing contracts through competitive and transparent means, McKinsey Africa—through senior partner Vikas Sagar—paid bribes to South African government officials. In return, the firm received highly confidential, non-public information about contract tenders, allowing it to tailor its proposals for multimillion-dollar consulting deals. This insider advantage led McKinsey to rake in $85 million in profits, all while fueling corruption within South Africa’s infrastructure.

When the United States Department of Justice (DOJ) and South African authorities uncovered the scheme, McKinsey Africa was forced into a Deferred Prosecution Agreement (DPA), agreeing to pay $122.85 million in penalties.

Vikas Sagar, a former senior partner at McKinsey & Company, pleaded guilty in December 2022 to participating in a conspiracy to violate the Foreign Corrupt Practices Act (FCPA) in connection with bribery schemes involving South African state-owned enterprises, including Transnet and Eskom. His guilty plea was unsealed in December 2024. As of now, there is no publicly available information regarding his sentencing or current whereabouts. justice.gov

Other Key Figures and Companies Implicated

Several high-profile individuals and companies were linked to the scandal, including:

Jacob Zuma (Former President of South Africa) – Allegedly allowed state capture to flourish, benefiting the Gupta family and corrupt corporations.

Anoj Singh (Former CFO, Eskom & Transnet) – Accused of signing off on fraudulent contracts that enriched McKinsey and Gupta-linked firms.

Salim Essa (Businessman, Gupta associate) – Controlled Trillian Capital, which served as an intermediary for corrupt deals.

Brian Molefe (Former Eskom CEO) – Allegedly facilitated McKinsey’s irregular contracts at Eskom.

“The McKinsey settlement is important, but justice will not be served until individuals are held accountable,” said Herman Mashaba, leader of ActionSA.

Legal Process and Settlement Details – Dec 2024

Following intense legal scrutiny, McKinsey reached a settlement with the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC). The agreement includes:

• A $122 million fine to settle bribery-related investigations in the United States.
• A public admission of past compliance failures in South Africa.
• A commitment to corporate reforms to prevent future corruption.

“We deeply regret our past mistakes in South Africa,” said Bob Sternfels, Global Managing Partner of McKinsey & Co. “We are committed to rebuilding trust and improving our ethical standards.”

However, no senior executives at McKinsey have been criminally charged, sparking criticism from anti-corruption activists.

“Corporations pay fines, but individuals never go to jail,” said David Lewis, former head of Corruption Watch South Africa.

Timeline of Events (2012 – 2025)

The ‘Everything Is for Sale’ Mentality

Africa’s corruption epidemic isn’t just a homegrown problem. It is, in many ways, fueled by Western corporations that operate under a simple but dangerous ideology: everything—political influence, government contracts, regulatory approvals—is for sale at the right price.

Multinational corporations see Africa as a lawless frontier where rules are flexible, oversight is weak, and justice is slow. Companies like McKinsey, Trafigura (convicted for bribery in Angola), and the executives behind Mozambique’s ‘Tuna Bond’ scandal have all capitalized on this lax environment. They have mastered the art of winning business by greasing palms rather than through fair competition.

Africa’s Weak Structures and Poor Oversight

While foreign greed plays a major role, Africa’s internal weaknesses make corruption inevitable. Most countries lack strong institutions to hold corporations accountable. Laws are either poorly enforced or selectively applied, often depending on political connections.

• State-Owned Enterprises as Corruption Hubs: Entities like Eskom and Transnet in South Africa, the Nigerian National Petroleum Corporation (NNPC), and Mozambique’s maritime sector are regularly implicated in fraud. These institutions, meant to serve the public, are frequently looted by politicians and their business allies.
• Judicial and Regulatory Weaknesses: While South Africa has shown some progress in prosecuting corporate corruption, many African nations either lack the capacity or the political will to pursue justice. As seen in Mali’s standoff with Barrick Gold over $200 million in unpaid taxes, powerful corporations often walk free.
• Political Patronage Systems: Corruption isn’t just about money; it’s about power. Many business crimes are linked to ruling elites who use government institutions as personal cash machines. The DRC’s cobalt mining scandal, where executives illegally sold mineral rights to foreign companies, highlights this destructive pattern.

The Impact on Africa’s Business Community

For honest businesses, corruption is a nightmare. African entrepreneurs and legitimate corporations are often outcompeted by those willing to bribe their way to success. This discourages investment, raises costs, and reinforces the stereotype that Africa is a high-risk business environment.

A more tragic consequence is economic instability. Mozambique’s ‘Tuna Bond’ fraud triggered a financial crisis. Eskom’s corruption exacerbates South Africa’s power shortages. In Nigeria, oil theft drains billions from state revenues, worsening the country’s economic woes.

Despite Africa’s challenges, legal action remains one of the most effective tools for fighting corruption. McKinsey’s downfall was enabled by international anti-bribery laws, particularly the U.S. FCPA, which allows American courts to prosecute companies for foreign corruption. Similarly, the conviction of Mozambique’s former finance minister in a U.S. court shows that cross-border cooperation can bring criminals to justice.

However, Africa needs more homegrown legal victories. Countries must strengthen their legal frameworks, empower independent anti-corruption bodies, and invest in judicial systems that can take on powerful offenders. Without these reforms, Africa will remain a playground for corrupt corporations and their local enablers.

Corruption in Africa is both a symptom and a cause of weak governance, underdevelopment, and foreign exploitation. Until African nations establish strong institutions and enforce accountability, scandals like McKinsey’s will continue to surface. Western corporations must also be held to higher ethical standards when operating on the continent.

The message must be clear: Africa is not for sale. The business community, governments, and civil society must unite to build an economic environment where success is driven by innovation and fair competition, not by who can pay the biggest bribe.

What Happens Next?

• More prosecutions expected – South Africa’s National Prosecuting Authority (NPA) has signaled further legal action against individuals.
• International pressure mounts – The UK and Swiss authorities are investigating banks and auditors linked to the scandal.
• Calls for corporate accountability grow – Activists demand that executives, not just companies, face jail time.

“We will not stop until every corrupt deal is undone and every guilty party is held accountable,” vowed Shamila Batohi, head of the NPA.

Further Reading and Sources

• Reuters: McKinsey pays $122 million settlement over South Africa probe
• BBC News: State capture scandal: How South Africa lost billions
• U.S. Department of Justice Statement: McKinsey’s role in South African corruption – Press Release Number: 24-1520
• Mail & Guardian: Zondo Commission’s final report on state capture

Sevenza Business News will continue monitoring this case as more details emerge. Stay tuned for updates.