South Africa

No more govt contracts – Treasury slaps Bain & Co with 10-year ban

Bruce Whitfield gets comment from Nicole Fritz, Director at the Helen Suzman Foundation.

– National Treasury has banned Bain & Company from government contracts for ten years

– The global management consulting firm is implicated in state capture at the South African Revenue Service

– Bain say they disagree with the ban and are considering their options in response to the decision

National Treasury has has banned Bain & Company from government contracts in South Africa for the next decade.

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The announcement comes almost 2 months after the UK government imposed a similar 3-year ban on the global management consulting firm.

Bain & Co is implicated in state capture at the South African Revenue Service.

Related articles:

'UK govt set precedent with Bain ban' but 'SA lacks the moral courage to act'

Treasury boss calls for Bain blacklisting but 'that's not good enough' – Abedian

"Finally some action from the Government! Better late than never" tweeted economist Dr Iraj Abedian in response to the news.

He said the private sector now has to follow suit urgently.

In response, Bain said they disagree with the ban and are considering their options in response to the decision.

The company maintains that there is no evidence it colluded with Sars or engaged in any corrupt and fraudulent practices.

We had already reached out to various stakeholders, including Treasury and Sars, to engage in further dialogue. Despite this outreach, we were given no notice of or opportunity to respond to the restriction prior to its apparent implementation.

Bain & Company

Bruce Whitfield gets comment from Nicole Fritz, Director of the Helen Suzman Foundation (HSF).

Fritz, a public interest lawyer, refers to comments by Stephen York (managing partner of Bain SA) published on Business Day.

There's this insistence that we, the South African public, should prefer an internally commissioned report… and which Bain says exonerates it… over and above the findings of two separate judicial commissions of enquiry in the Nugent Commission and the Zondo Commission.

Nicole Fritz, Director – Helen Suzman Foundation

Bain has never made that internally commissioned report available for public scrutiny, so this idea that we should prefer it… seems farcical.

Nicole Fritz, Director – Helen Suzman Foundation

The South African Commissions found that there are grounds for further investigation of Bain & Co, with a view to possible prosecution.

For York to present the view that there has been no such recommendation is a distortion, Fritz says.

It is not within the mandate of a commission of inquiry necessarily to prepare a case that's ripe for prosecution, but they are obviously very serious about the National Prosecuting Authority investing time and resources in investigations with a view that it would then produce prosecutions.

Nicole Fritz, Director – Helen Suzman Foundation

There was a call in August from National Treasury's Ismail Momoniat for companies in the private sector both locally and abroad not to do business with Bain.

He was speaking a day after the UK banned the global management consulting firm from any new government contracts over the next three years.

What I said is that what Bain did to destroy Sars, is akin to treason… because they plotted for about 18 months before Mr [Tom] Moyane was appointed as commissioner to get him in, and they already had a plan to rid Sars of people who had really contributed to building it…

Ismail Momoniat, Acting Director General – National Treasury

For more detail, scroll up and listen to the conversation

This article first appeared on CapeTalk : No more govt contracts – Treasury slaps Bain & Co with 10-year ban

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