McKinsey unit will pay $123M to settle claims it bribed South African officials
Settlement as Punishment vs. “Legalized Bribe”
- Several commenters argue that large fines without admissions of guilt resemble bribes or extortion: companies pay to avoid trials, jail time, or deeper scrutiny.
- Others counter that sovereign fines are categorically different from under‑the‑table payments, but concede that if fines are lower than the gains, they become a “cost of doing business.”
- Debate over numbers: DOJ-estimated profit of ~$85M vs. $123M fine; some say inflation and reinvestment mean McKinsey still comes out ahead, others say the action is net-unprofitable.
McKinsey and the Consulting Industry
- Many see McKinsey as structurally corrupt, citing its role in South African “state capture” and the opioid crisis, and arguing that such firms enable collusion, worker exploitation, and harmful “best practices.”
- Some broaden the critique to all large consulting/accounting firms; others argue McKinsey is not uniquely bad.
- An insider describes the firm as decentralized, with anxious, imposter-syndrome-heavy culture rather than overtly “evil,” and limited visibility across projects.
South African State Capture Context
- South African commenters frame this as one episode in a decade of “state capture” under Jacob Zuma and the Gupta family, with Eskom’s mismanagement dragging down the economy.
- Skepticism that South African officials who took bribes will ever face local accountability.
US DOJ, FCPA, and Jurisdiction
- Some question why the US enforces laws over bribery abroad instead of leaving it to South Africa.
- Others cite the Foreign Corrupt Practices Act: US entities and those operating in the US are subject to US anti-bribery law, partly to protect fair competition and international trade reputation.
- A referenced report claims only the US and Switzerland actively enforce foreign bribery laws, making this approach unusual and controversial.
Bribery, Competition, and Corruption in Developing Countries
- Several claim doing business in parts of Africa (and Latin America, SE Asia) is effectively impossible without bribes due to obstructive bureaucracies and officials expecting payments.
- Others reject adjusting morals to compete with more corrupt players (e.g., Chinese firms), arguing that sacrificing ethics for contracts is unacceptable.
- Disagreement over whether such corruption is culturally/systemically inevitable or an excuse for corporate behavior.
Accountability, Jail Time, and Regulation
- Frustration that no senior individuals see prison despite large harms (opioids, state capture, other scandals); settlements are seen as insufficient deterrents.
- Some connect this to broader failures of deregulation, captured judiciaries, and corporate impunity, while others challenge what “deregulation” actually occurred here.
- Questions raised about why settlement money goes to the US government rather than South Africa; answer given: separate legal actions in each jurisdiction.