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Bain & Co ‘restricted’ from tendering government contracts due to corruption at Sars
Last month, Bain issued a public apology for its role in state capture.
A South African Revenue Service (Sars) office. Picture: iStock
National Treasury has followed in the steps of the United Kingdom (UK) by banning global consultancy Bain & Company from doing business with the state.
Effective from this month, Bain will be restricted from tendering government contracts for a period of 10 years until September 2032.
According to Treasury’s database for restricted suppliers, the reason behind the move to ban the company is because Bain “engaged in corrupt and fraudulent practices” in competing for a South African Revenue Service (Sars) contract.
ALSO READ: Public Interest SA slams Bain’s apology, accuses it of ‘egregious corruption’
Treasury’s acting director-general Ismail Momoniat previously called for South African and international companies to stop doing business with Bain.
The Economic Freedom Fighters (EFF) had also called for Bain to be prosecuted, saying no action has been taken by any of the entities tasked with investigating and prosecuting crimes in South Africa against the company.
State Capture
Former Bain official, whistleblower Athol Williams, gave details to the the Judicial Commission of Inquiry into Allegations of State Capture about how the consultancy firm had been instrumental by facilitating corruption at Sars under former president Jacob Zuma’s tenure.
In 2015, Bain conducted a diagnostic for Sars and the company was said to have been paid R164 million over a 27-month period for its attempts at restructuring the revenue service’s operations.
It was alleged that former Bain managing partner Vittorio Massone conducted meetings with former Sars commissioner, Tom Moyane in order to help him secure the position.
READ MORE: Time for SA to follow UK’s steps in banning Bain & Company for its role in state capture
Meanwhile, Chief Justice Raymond Zondo, in the State Capture report, recommended that all Bain’s state contracts be re-examined and the country’s law enforcement agencies investigate “with a view to enabling the National Prosecuting Authority (NPA) to decide whether or not to initiate prosecutions” in connection with the award of the company’s contracts”.
Bain issued a public apology for its role in state capture and called for “constructive dialogue” after the UK, last month, banned the company for three years.
