Bain & Company Statement:

Bain & Company Statement:

RESPONSE TO TREASURY RESTRICTION ON BAIN WORK FOR STATE  

Johannesburg29 September 2022We deeply regret the mistakes made in the procurement and execution of Bain South Africa‘s  (Bain SA) work with SARS between 2015 and 2017. SARS was – and remains – a critical institution and a source of pride for us as South Africans. We are embarrassed that this could have occurred in the first place and are angry that our work was used by others to damage a critical institution and South Africa.

We have acknowledged and apologised publicly for the mistakes that were made and we accept that there must be consequences for those mistakes.

We repaid to SARS all fees plus interest prior to the completion of the Nugent Commission in 2018 and have not pursued any public sector work since 2019, nor did we have plans to do so in the future.

We note National Treasury’s decision to restrict Bain SA from any public sector work for 10 years effective September 2022 based our work with SARS which ended in 2017.

We disagree with the ban and are considering our options in response to this decision. 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.

There is no evidence that Bain colluded with SARS or engaged in any corrupt and fraudulent practices. While we acknowledge that Bain SA was aware of the request for proposal (RFP) before it was formally issued (as detailed on www.bain.com/sars), we have found no evidence, nor has any been produced, that Bain manipulated the procurement process in any way to exclude other bidders or specifically advantage Bain. This process was wholly run by SARS.

Bain SA competed for the bid award alongside other candidates pursuant to a competitive tender process and was awarded the contract in January 2015. At the time of the investigation, Baker McKenzie asked SARS for additional information regarding the procurement process which only SARS had access to, but SARS never responded to the request.

The new Bain South Africa leadership is determined to make sure that the events of the past can never be repeated. In line with the public commitment we made in our recent appeal for constructive dialogue, we will continue reaching out to key stakeholders to engage openly and honestly on a way forward. This includes doing what is required to restore our standing with the South African government and other stakeholders over time and to be a force for good in the country.

###

About Bain & Company 

Bain & Company is a global consultancy that helps the world’s most ambitious change makers define the future. 

Across 64 cities in 39 countries, we work alongside our clients as one team with a shared ambition to achieve extraordinary results, outperform the competition, and redefine industries. We complement our tailored, integrated expertise with a vibrant ecosystem of digital innovators to deliver better, faster, and more enduring outcomes. Our 10-year commitment to invest more than $1 billion in pro bono services brings our talent, expertise, and insight to organizations tackling today’s urgent challenges in education, racial equity, social justice, economic development, and the environment. Since our founding in 1973, we have measured our success by the success of our clients, and we proudly maintain the highest level of client advocacy in the industry.

Möchten Sie mit uns in Kontakt bleiben?

Wir unterstützen Führungskräfte weltweit, die kritischen Themen in ihrem Unternehmen zu adressieren. Gemeinsam schaffen wir nachhaltige Veränderungen und Ergebnisse.