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McKinsey is reportedly hiring top lawyers to defend accusations by advocate Geoff Budlender that it entered into a ‘sham’ arrangement with Trillian, which was involved in receiving ‘suspect’ contracts worth hundreds of millions of rand from South African electricity utility provider Eskom and pipeline company Transnet. Business Live reported Eskom appointed McKinsey in 2015 to provide a range of advisory services to the value of an estimated R1bn a year, but McKinsey allegedly agreed to subcontract 30% of its services to Trillian as its supplier development partner, despite senior managers at the firm thinking it was a ‘sham’. The Budlender Report suggests McKinsey had tried to mislead the inquiry and stopped its co-operation when confronted with evidence that it had provided false statements. The management consultancy has now appointed law firm Norton Rose Fulbright to counter the allegations made against it. 

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