Report shows role of consulting firms in damaging SOEs

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Civil society organisation Open Secrets has released an investigative report exposing three companies that have played a big role in the mismanagement and dysfunction of State-Owned Enterprises around the world.

The report titled: “The Corporations and Economic Crime” exposes the role consulting firms like McKinsey, Bain, and the Boston Consulting Group played in state capture, endemic corruption and mismanagement that led to crises including the current rolling blackouts endured by South Africa due to power utility Eskom’s inability to provide adequate energy supply. L

Luvano Ntuli, is an investigator at Open secrets, “One of the fundamental questions that we’re dealing with in our report is how management consultants, because of the name and the power that they yield, are able to enter into contracts with large SOEs like Transnet, Eskom, and we also look further abroad Angola, and Saudi Arabia and how these management consultants are able to over a course of a few years, completely derailed and looted these SOEs. One of the findings in our report is just how big and how massive McKinsey, Bain and Boston Consulting Group have been in the erosion of SOEs across the globe.”

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