SA’s “state capture” story

I never thought I wanted to outperform EFF’s Zuma’s heckler in Congress.Repay money‘,However Bain & Company, Has caused enormous damage to SA, so there is even greater compensation. Bain strangely seems to think that the protest that they were unknowingly partners in the occupation of the state and refunded the charges was enough to exempt them, but there is a (anonymous) business. Mann summarizes it completely. “They are now radioactive.” At least here. Nevertheless, BellpottingerBain, a global public relations agency that has promoted so many dirty tricks locally and elsewhere, may still collapse.Zondo’s exact Phase 1 report There is no doubt that complete greed and internal knowledge were at work.For Bain employees at the time listed Purge of SARS by Tom Moyane What kind of government did you think they were helping as “scary”? This Financial Times analysis includes appropriate comments from whistleblower Williams and blows Bain out of the water. It’s kind of annoying, a story of attention for business, and it too often exempts such behavior. – – Chris Baitman

Go ahead. For more information on Zapiro’s magic, visit the following website:

Bain & Co, Taxes and Jacob Zuma: The Story of “National Capture” in South Africa

Johannesburg’s Joseph Coteryl

As a young democratic financial breakwater, South Africa’s revenue services were renowned as one of the most effective tax collectors on the continent.

Still, after several meetings with then-president Jacob Zuma, management consultant Bain & Company won a major job in rebuilding it from scratch. As a result, this month it has been criticized in a judicial report as a graft corporate enabler in South Africa.

With Bain’s knowledge, Zuma appointed a close ally, Tom Moyane, in 2014 to head the revenue services known as SARS. Moyane dismissed key officials, significantly weakened authorities and impaired the ability to conduct tax evasion investigations. Bain later signed a contract to advise SARS.

Bain’s work sheds light on South Africa’s business-political ties and follows criticisms from peers such as McKinsey and KPMG.

Deputy Judge Raymond Zondo said Zuma weakened the post-apartheid country through so-called “state capture,” or manipulation of public resources for private gain, by consultants from a Boston-based company. I found that it helped to make it. Zondo called for a review of all Bain’s work in South Africa’s public sector.

The SARS purge was “one of the few cases in which President Zuma himself was directly and personally involved in the activity and planned to take over government agencies” and “how the private sector colluded” in the national occupation. A clear example of what it is, “said Zondo.

“I don’t think there is anyone [from Bain] Bain’s whistleblower Athol Williams told the Financial Times in an interview after last week’s report. But as the opportunity to take advantage of the weak system became apparent, he said, “It was just done greedily … What Bain did in South Africa would never do in Britain or the United States.” ..

The weakening of SARS has had a tremendous economic impact on a highly unequal country of about 60 million people. Zuma, who was imprisoned last year for opposition to an order to attend the investigation and was replaced by Cyril Ramaphosa in 2018, has denied cheating.

Allegations of fraud have triggered a previous judicial inquiry. In 2018, Bain acknowledged a “serious failure” at SARS and repaid the fee. Bain states that this latest report “misunderstands” activities in South Africa. In a statement to the FT, he said, “I apologized for being an unconscious participant in the process that caused serious damage to SARS,” but “intentionally or intentionally occupying the state in SARS or elsewhere.” I did not knowingly support it. “

For the past decade, Bain has worked closely with South African state-owned enterprises and the private sector. According to the report, the company’s former South African managing partner, Vittorio Massone, has a close relationship with Zuma and met him every six weeks on average from 2012 to 2014. The event management company, owned by a soap opera producer close to Zuma, has become Bain’s second-highest paid local advisor in the world, the report said.

Bain told the question that the repeated private meetings with the Head of State were marketing meetings and that his job with Moyane at SARS was executive coaching long before his hiring. Bain told FT that none of the meetings “was given any additional work or contract to Bain” and no payment was made. The company said in a meeting with Zuma “no one else knows the scope” before the internal investigation. Masone left the company after being “not completely transparent,” Bain added. Massone did not respond to the FT comment request.

As a sign of the close relationship between Bain and the President, the consultancy knew that Moyane had been appointed to lead the agency before the general public did. Moyane led the purge of SARS, defending veteran officials with great courage, and some Bain executives called him “scary,” according to emails found in the investigation. Moyane denied cheating on the inquiry.

“Bain wasn’t limiting that plan to SARS alone,” Zondo said. It also aimed to shift its influence with Zuma into the top role of the South African government.

Between 2012 and 2015, Bain planned to “rebuild the entire sector of South Africa’s economy” and centralize national procurement, according to the report. “Central Procurement Agency: He likes it and wants an implementation plan,” Massone said in a single email referring to Zuma.

“In light of the important role that procurement abuse played in the occupation of the state … This focus has special implications,” the report added. Much of the research focused on the abuse of procurement contracts to support Guptus, a business family closely associated with Zuma. The Gupta dynasty has always denied cheating.

“Uncomfortable [Zuma], I think they are [Bain] Williams told FT that Masone wasn’t a villain. “Especially in management consulting, it is impossible to work in a vacuum. [intellectual property] Developed by Bain. .. .. Masone would have used it. Zondo praised Williams’ testimony and said, “We have rejected numerous attempts from Bain & Company to give him a large sum of money in return for his silence.” Bain said his testimony was based on speculation.

According to the report, Bain’s quest for influence extended to Masone attending a conference to discuss the manifesto of the dominant African National Congress. But under these grand ambitions, “all over Africa, Bain had no experience with tax authorities,” and “knew they didn’t have the necessary expertise,” the report said. ..

So far, the South African business community is backing Bain. Last year, the company rejoined the industry group Business Leadership South Africa. “The work the company did to redeem itself ultimately satisfied the board of directors with eligibility for re-enrollment,” said Busi Mavuso, CEO of BLSA, this week.

“It doesn’t send the right message,” said Karam Singh, executive director of South African NGO Corruption Watch. “Anyone can talk about anti-corruption,” he said, but it proved difficult to get true accountability from businesses over the occupation of the state.

“We are working hard to fix this episode and regain the trust of South Africa,” Bain said. Since 2018, the company has taken “comprehensive action to avoid repeating past mistakes,” he added.

Bain’s future in South Africa may depend on individual client decisions. “If you’re in the public sector, I don’t think it’s possible. They’re radioactive,” said one unnamed business leader. In the private sector, the board needs to weigh the reputational risks of working with Bain against the benefits of consulting.

Without government protection against whistleblowers (one of the state’s health ministry was killed last year), Williams hid and spent this Christmas away from his close family. He had a hard time finding a job after whistling to Bain. It “completely ruined my reputation in the business world.”

“The business community is telling us to look to the future and not look back,” he said. However, he concluded that: “Bain does not compensate for the damage it caused.”

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SA’s “state capture” story

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