McKinsey’s Gambit Won’t Stop It Being Reported To US Graft-Busters

The consultancy announced it would deposit R970-million it earned from Eskom into a ring-fenced account.

The global management consultancy McKinsey & Co on Tuesday announced it would deposit R970-million it earned from Eskom into a ring-fenced account and challenged the power utility and its black empowerment partner, Trillian, to submit the troubled contract for review to the High Court.

But Corruption Watch says this would not stop its request to the US Department of Justice to probe the contract the organisation called "outrageous", "clearly illegal" and "ludicrous".

The investigation is being requested in line with the US Foreign Corrupt Practices Act, which has a global remit. McKinsey & Company is an American company. Corruption Watch will also ask the Department of Justice to probe the consultancy for money laundering if any of the Eskom payments were remitted out of South Africa. read more »

Kobe Steel Is Likely to See Onslaught of Lawsuits Over Fake Data

Kobe Steel Ltd.’s legal problems are just beginning in wake of the company’s disclosure that it falsified data for years about the durability of aluminum and copper used in airplanes, trains and vehicles.

The Japanese company, which supplies many of that country’s top automakers, is likely to be targeted by investors, customers, consumers and regulators -- both in its home country and in the U.S. -- as the fallout continues from its admission this week, according to plaintiffs’ lawyers and legal experts. read more »

Chief Executive Officer of Armored Vehicle Company Convicted of Defrauding the United States

A federal jury convicted the owner and chief executive officer of an armored vehicle company for his role in a scheme to provide the U.S. Department of Defense with armored gun trucks that did not meet ballistic and blast protection requirements set out in the company’s contracts with the United States. read more »