By Lehlohonolo Lehana.
The global management consultancy Bain & Company has been barred from tendering for South African government contracts for 10 years after its “grave professional misconduct” in state corruption.
“The effective date of restriction is 5 September 2022 until 4 September 2032 for engaging in corrupt and fraudulent practices related to a SARS [SA Revenue Service] contract,” National Treasury said in a statement on Thursday.
“This restriction has been published on the National Treasury website and database for restricted suppliers. The restriction will apply to any other contract for services awarded to Bain & Co in the public sector.”
Treasury said it was, in collaboration with SARS, “in the process of restricting Bain & Co, South African Directors through a phased approach.”
The decision to ban the company comes seven weeks after the UK government banned it from competing for state contracts for three years.
Bain was barred from bidding for British government contracts for three years for being “guilty of grave professional misconduct which renders its integrity questionable,” minister for Government Efficiency Jacob Rees-Mogg told Bain’s UK Managing Partner, James Hadley.
Bain then said the firm is “disappointed and surprised” and would be responding to express concern about the decision-making process before considering other options.
The global company said in 2018 its work for the South African Revenue Service amounted to “serious failure” and paid back fees, but has since denied willfully facilitating or being party to corruption.
Other international firms have returned earnings for their links to graft in South Africa, notably McKinsey & Co., another global consultancy, and Swiss industrials firm ABB German IT services firm SAP and auditor KPMG are two others to have been embroiled in scandals in the country during the former president Jacob Zuma era.