Bain Whistleblower Calls for Holistic Approach to Combat State Capture

South Africa needs a more comprehensive strategy to address the legacy of State Capture, according to Athol Williams, the whistleblower who exposed Bain & Co’s role in the corruption scandal.

In a statement to Business Report, Williams emphasized the importance of a consistent and structured approach to holding companies and individuals accountable, alongside legal action, to rebuild public trust and economic stability.

Addressing Haphazard Justice

Williams criticized the “haphazard and inconsistent” manner in which implicated entities are dealt with.

“Being haphazard does not serve our pursuit of justice and causes damaging uncertainty in our economy,” said Williams.

He called for clear and uniform standards to ensure justice is delivered, instead of reacting piecemeal to new revelations.

Presidency Criticizes Bain and McKinsey

The South African Presidency expressed concern over the involvement of Bain & Co and McKinsey in key national initiatives despite their history of corruption during the State Capture era.

Presidency Spokesperson Vincent Magwenya stated:

“The appointments do not contribute to public trust and good governance.”

Both Bain and McKinsey have faced significant consequences in the aftermath of their involvement in State Capture:

• Bain was banned in 2022 after being implicated in the restructuring of the South African Revenue Service (SARS), which gutted investigative capacity.
• McKinsey paid over R2 billion in settlements for its role in bribery at Transnet, a state-owned enterprise.

Business Community Reaction

Business Unity South Africa (BUSA) and Business Leadership South Africa (BLSA) have withheld comment until discussions with President Cyril Ramaphosa.

Political analyst Daniel Silke noted that the President’s comments might reflect moral posturing, stating:

“Scepticism for international consultancy has become fashionable in political quarters globally. However, these companies remain vital to certain business sectors.”

Silke also highlighted the contradiction in the government’s reliance on consultants while advising businesses to avoid them.

Bain’s Reputation Repair Efforts

Bain is attempting to restore its reputation in South Africa through pro-bono work. The consultancy is currently supporting the Energy Council of South Africa‘s Project Management Office.

McKinsey, meanwhile, is partnering with a business-lobby group for next year’s G20 Business 20 (B20) events in South Africa, drawing further criticism from the Presidency.

Williams reiterated the need for a clear, holistic approach to justice in the wake of State Capture:

“We must decide what we want from these companies and then hold them to this requirement, rather than jump up and down every time they do something.”

The controversy surrounding Bain, McKinsey, and other entities implicated in State Capture highlights the need for consistency and transparency in South Africa’s accountability processes. Rebuilding trust in public and private sectors will require a balanced approach, blending legal measures with economic considerations.

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