Budlender inquiry claims false statements on Trillian were made
International consulting firm McKinsey has appointed law firm
In Budlender’s report, released on Thursday, McKinsey is accused of knowingly entering into a & sham& arrangement with Trillian to keep the
Budlender’s report also suggests McKinsey had tried to mislead the inquiry and stopped its co-operation when confronted with evidence that it had provided false statements.
McKinsey said on Sunday it had appointed
Trillian, majority-owned by Gupta lieutenant
The inquiry also found further evidence to support former public protector Thuli Madonsela’s view that Trillian had contributed R235m to the Gupta purchase of the Optimum coal mine from
Trillian said it had not been given the chance to comment on the report before its release and that many allegations in it & appear to be incorrect& McKinsey comes in for a roasting in the report for agreeing to subcontract 30% of its services to Trillian as its supplier development partner despite the consulting firm’s senior managers thinking it was & a sham& International firms working on large contracts with state entities have to partner with local firms to transfer skills as part of the supplier development programme. Budlender’s report details how McKinsey managers allegedly regarded the programme and its partnership with Trillian as a necessary evil. Budlender cited damning information provided by a former Trillian executive. The attitude of McKinsey’s leadership was that & Trillian as the development partner is simply a necessary but unwanted piece of baggage in the awarded contract& the executive had said.
At a meeting of the joint team, a senior McKinsey representative had allegedly said of the supplier development programme: & It doesn’t really matter as long as you get your percentage.& Budlender concluded in the report that & the
When the inquiry first asked McKinsey about its partnership with Trillian, the consultancy replied it & did not work on any projects on which Trillian was as an SDP [service delivery plan] or a subcontractor to McKinsey.& After Budlender had provided McKinsey with proof it had subcontracted with Trillian, the consulting firm stopped co-operating with the probe.
& I conclude that the denial of McKinsey is false,& said Budlender. & Why they made a false denial is for them to explain.& Dordel did not respond on Sunday to the accusations that it had misled the inquiry or had knowingly formed a bogus partnership with Trillian.
& At one time, we explored a formal supplier-development partnership with Trillian, but as a consequence of a detailed risk review, we decided over a year ago not to proceed because of our concerns about Trillian’s shareholding,& Dordel said.
Support: The Budlender inquiry supports former public protector Thuli Madonsela’s finding that Trillian had contributed R235m to the Gupta purchase of Optimum coal mine from
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