South African biggest unions have expressed anger and dissatisfaction over the role of Bain & Co and McKinsey in the G20 Summit discussion.
The South African Federation of Trade Unions (Saftu) and Congress of South African Trade Unions (Cosatu) said the decision of the National Energy Crisis Committee (Necom) and the B20 network—led by Business Unity SA (Busa)—compromised the process.
The G20 meeting will be hosted in Johannesburg in November next year.
Saftu general secretary Zwelinzima Vavi said the appointment of the two firms is likely to show off the state and corporate degeneracy to the world.
Vavi pointed out that Bain was banned by the National Treasury from doing business with the government for 10 years in September 2022 due to its involvement in state capture, especially degrading the SA Revenue Services (Sars).
The National Prosecuting Authority (NPA) earlier this month announced that it had reached an agreement with McKinsey, which would pay about R1.1 billion into the country’s Criminal Assets Recovery Account “in recognition of the social and economic harm caused by the conduct of a former employee in South Africa”.
Vavi said despite this, the consulting company contributed to wrecking both Eskom and Transnet.
“And yet Bain was just appointed to provide advice to Necom while McKinsey was appointed as a consultant to coordinate BG20 activities. This is part of the overall G20 functions the South African state agreed to have responsibility for,” said Vavi.
Both Bain and McKinsey did not respond.
Busa spokesperson Sizwe Maswanganye said the organisation would not comment on this matter at this moment but will give a response after our meeting with the Presidency.
The Presidency also expressed concerns regarding the appointment of the two firms on Sunday.
While the Presidency or government has no control over the B20 processes, it does not endorse the appointment of McKinsey in this regard, the statement said.
“Similarly, the Presidency does not condone the inclusion of Bain in supporting the activities of Necom [National Energy Crisis Committee]. The appointments do not contribute to the engendering of public trust and promotion of good governance, given the well-documented role of the two firms in state capture and corruption,” said the Presidency.
The office also called on the business to reconsider its position and to appoint more suitable partners.
Vavi said this was a pathetic statement, representing “our” state elites trying to absolve themselves of accountability and responsibility in this massive scandal. He said the government was not a helpless player that can issue a dry statement like this. He said the government has the power to discipline the world’s worst corporate corruption.
On the other side, Cosatu parliamentary coordinator Matthew Parks said organised business’ “bizarre” attempts to cleanse these skunks of international capital were an insult and an affront to South African workers who were still paying the price of the damage done to Eskom, Transnet, Sars, the state and the economy during the decade of state capture.
“It is workers who have lost jobs, seen wages cut and eroded by inflation, the public debt soar squeezing out key essential public services, an economy devastated by unparalleled load shedding and struggling to grow and reduce unemployment.
Business needs to appreciate that workers do not take kindly to corruption or attempts to cleanse those found to have been complicit. These and other reckless attempts to revise recent history and rehabilitate those who plunged South Africa into the depths of anarchy and misery must be condemned for the betrayal to the nation that they are,’’ Parks said.
Meanwhile, Vavi said if Necom and Busa continue along these lines, the country would become another case of anger boiling over.
Transparency International’s 2023 Corruption Perceptions Index (CPI) indicates that corruption in South Africa has worsened under the administration of President Cyril Ramaphosa, compared even to the previous leadership of former President Jacob Zuma. South Africa's score dropped to 41/100, its lowest ever, ranking it 83rd out of 180 countries.
“This decline reflects widespread corruption, including state capture and ineffective systems to hold public officials accountable. Concerns have also been raised about impunity for powerful figures, lack of transparency, and undermined judicial independence.
Given that the Government of National Unity has Democratic Alliance officials who tend to represent the interests of white monopoly capital and western multinational corporations, it is clear that South Africa is taking major steps backwards and cannot expect to be released from Financial Action Task Force ‘grey listing’ next year.”
Vavi also demanded accountability and explanation from Busa.
“We call for a transparent explanation of the criteria used to appoint these firms for energy management and G20-related events. Why are companies with tainted reputations still being awarded contracts? And why are their officials who are obviously guilty of corruption, not wearing orange?
We demand that all contracts with McKinsey, Bain, and any other corrupt consultancy be forthwith cancelled, and another company not involved with attempts to collapse our country and its young democracy be appointed,” he said.