Embarrassed McKinsey caps consultancy fees after state capture debacle

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McKinsey & Company, the consulting firm mired in allegations of state capture and the overcharging of state-owned entities, says it has taken a decision to be "more vigilant" in its future dealings with public companies and introduced a cap on its fees.

This emerged from the evidence of a senior partner at the company Jean-Christophe Mieszala, who was testifying before the commission of inquiry into state capture on Thursday. Mieszala detailed how the company's business dealings in the country has prompted a global overhaul of its governance structures.

His testimony came a day after McKinsey agreed to repay R650 million in fees it earned for the work it performed on Transnet and SAA contracts alongside Gupta-linked Regiments Capital. The freight rail operator, however, insists that it owed more than R1.2 billion.

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