McKinsey's South Africa branch charged with corruption

The South African branch of McKinsey Company, the global consulting firm, was charged with a corruption scandal involving work the company completed advising the country's state-owned freight rail and port operator. It may be the first time in McKinsey's 96-year history that the firm has faced criminal charges.

South Africa's National Prosecuting Authority has added McKinsey and one of its former top consultants to a long list of defendants in a case involving a locomotive purchase contract for the state-owned operator, Transnet, the authority said in a statement on Friday. McKinsey oversaw the bid, which was the country's largest public procurement at the time it was announced in 2012.

The former chief executive of Transnet is facing charges including fraud, corruption and money laundering. It wasn't clear what specific charges McKinsey and its former senior partner, Vikas Sagar, would face. A spokesman for the authority wasn't available for comment.

A spokesman for McKinsey said that they believe the charges against our South Africa office are meritless and they will defend themselves against them.